Thanks Brit and morning regulars.
Half-time round-up:
The share market extended its four-day freefall to 250 points this morning before paring losses after weak retail and trade data resurrected the possibility of another rate cut.
At lunchtime the ASX 200 was 20 points or almost 0.4% weaker at 5564 but in recovery after hitting a four-month low of 5526 shortly before the 11.30am EST release of April economic data. The dollar dived more than half a cent to 77.31 US cents as forex traders revised their rates outlook after reports showed retail sales stalled and exports fell sharply.
Retail sales were unchanged in April from a downwardly revised March figure, according to the ABS. Economists had predicted growth of 0.3%.
Read more here.
The trade deficit tripled over the same month as the value of exports tumbled 6% from the month before. The deficit came in at $3.9 billion, up from a revised $1.2 billion reading for March and well above the $2.1 billion anticipated by economists.
Read more here.
Yield stocks led the mid-session turnaround as traders reconsidered the likelihood that the current easing cycle is over. The financial sector was recently flat at 7297 after earlier hitting 7216. The IT sector was ahead 1%. The consumer staples sector was down 0.8% after MTS announced a profit downgrade.
China's Shanghai Composite rallied 0.44%, Hong Kong's Hang Seng 0.45% and Japan's Nikkei 0.35%. Dow futures were recently down eight points or less than 0.1%.
Crude oil futures slid four cents this morning to US$59.60 a barrel. Spot gold was $1.40 softer at US$1,183.50 an ounce.
Hooray for bad economic news. If the share market bounces 30 points on some poor retail and trade figures, just think what it could do with a recession. We'll be rich! Trading: usual mixed bag at this trading desk. Took ten pips out of the first bounce in SYR, which was a nice start but unfortunately gave me the sort of positive bias that gets you back into the same share too soon ("Hey, I have a special relationship with this share. We understand each other. So what if it's falling - I'll by more.") Needless to say, my second buy is a fair way underwater at time of writing. Still time to come good, but at the expense of a much better entry. Was a day early into RFG yesterday and exited for peanuts - got something more substantial from it this morning.
