daytrading july 23 afternoon

Thanks Endless.

Half-time round-up:

Australian stocks gave back half of last week's gains as a slump in risk appetite saw Asian markets, US futures, gold, oil and the dollar all move lower this morning.

At lunchtime the ASX 200 was off 58 points or 1.4% at 4141 and on track for its heaviest fall of the month as a return of sovereign debt worries in Europe was joined by predictions that China's slowdown is accelerating. Resource stocks led the retreat, with the metals & mining sector plunging 3.3%, gold 3.3%, materials 3.1% and energy 2.4%. Consumer staples (+0.4%) was the only sector to advance, following a 5.1% rise in Woolworths' sales last quarter.

The declines came as investors digested a string of damaging headlines from Europe and China over the weekend. A second Spanish regional government, Murcia, warned that it may need to be bailed out. Germany's Finance Minister warned that Greece must meet its budget targets or face the loss of EU funding. A member of the People's Bank of China monetary policy committee said growth may slow to 7.4% this quarter.

"There are many global macro headwinds," George Boubouras, head of investment strategy at UBS AG's Australian unit, told Bloomberg. "Risk aversion persists for many investors. Cautious corporate guidance remains, given the many different macro and political challenges."

US futures retreated as Asia's biggest markets backtracked for a second straight session. Japan's Nikkei was lately down 1.47%, Shanghai 0.96% and Hong Kong's Hang Seng 2.37%. Dow futures were recently down 66 points or 0.5%.

Australia's producer price index increased more than expected last quarter. The PPI rose 0.5% to an annual rate of 1.1%, against expectations of a quarterly rise of 0.3%.

Crude oil futures dropped $1.21 this morning to US$90.49 a barrel. Spot gold was $3.50 weaker at US$1,579.20 an ounce. The dollar was buying $US1.0312.


A brutal morning at the top end of the market after last week's armchair ride. This could be a tough week, with euro-zone inspectors due to arrive in Greece tomorrow to examine the books. We may be nearing the end game there. Fortunately for traders, IAU came gift-wrapped this morning to get the week off to a flying start. I didn't trade it as well as some here, but there was enough wiggle room to offer significant profits without nailing the best entry and exit. Less profitably, I had a nice bounce in ILU and a paltry half-pip in GRR when a capper shook me out of the trade.