Thanks Brit and morning regulars. Half-time round-up: The share...

Thanks Brit and morning regulars.


Half-time round-up:

The share market's three-day decline hit 200 points this morning as traders dumped yield stocks as unexpectedly strong economic growth data cruelled the likelihood of further rate cuts.

At lunchtime the ASX 200 was 55 points or 1% lower at 5582 after earlier extending its retreat from Friday's close of 5777 to 202 points. Gains in the metals & mining sector +0.7% and materials +0.2% were dwarfed by falls in health -1.8%, consumer discretionary -1.9%, property trusts -1.5% and financials -1.3%.

The retreat accelerated after the 11.30am EST release of GDP data showing the economy grew 0.9% over the first three months of the year. Economists had anticipated growth of around 0.7%. The annual rate was a seasonally-adjusted 2.3%, also ahead of expectations for annual growth of 2.1%. Read more here. The dollar was a fifth of a cent higher at 77.98 US cents.

"Today's GDP data underscores why we shouldn't be too concerned about the economy right now,"Aberdeen Asset Management senior investment manager Jasmin Argyrou told Fairfax. "Some of the worrying trends in confidence we saw late last year have reversed and although investment activity is subdued, household consumption has held up surprisingly well... It seems that pre-emptive action from the RBA has had some effect, which could see rates stay on hold for some time."

China's Shanghai Composite eased 0.08%, Hong Kong's Hang Seng added 0.79% and Japan's Nikkei dropped 0.43%. Dow futures were recently ahead by 11 points or less than 0.1%.

Crude oil futures retraced 29 cents this morning to US$60.97 a barrel. Spot gold was $2.20 weaker at US$1,192.20 an ounce.


Looks like the market's medium-term downtrend is re-establishing itself after a three-week pause. Good chance that the XJO will close at a four-month low this afternoon. Trading: not quite a circus clown day, but the market is leaving plenty of banana skins lying around for unwary traders. Got something out of ALQ and QBE before they really sold off. Been selectively picking up potential oversolds since then without much joy yet - RFG, BRG, SXL and MAT. Quick postscript to yesterday - managed to finish a few hundred dollars ahead for the day thanks to scalps in the likes of AVQ, AWE and 1PG. Not a great day's work but arguably better than I deserved.