Daytrading May 1 afternoon

Thanks Brit and morning regulars.


Half-time round-up:

Australian shares are on course to break a three-session losing run after solid Chinese factory data and rising hopes for a rate cut on Tuesday brought buyers back to the market.

At lunchtime the ASX 200 was trading 25 points or 0.4% ahead at 5815 but still on course to end a nervy week more than 100 points below last Friday's close. The metals and mining and energy sectors led this morning's turnaround, rising 1.8% and 1.5%, respectively, on the back of healthy gains in key commodity prices and news that Chinese factory activity was better than expected last month. The official manufacturing Purchasing Managers Index held steady at 50.1, ahead of economists' expectations for a drop to 50. The report raised hopes that recent monetary easing has stabilised demand at Australia's largest trading partner. Read more here.

Energy stocks rallied 1.3%. The financials sector lifted 0.3% from yesterday's three-month low following a Fairfax report that the Reserve Bank has no choice but to reduce the cash rate next week to temper a rising dollar and weak economic growth. Read more here. The report helped drive the dollar down to 78.92 US cents from above 80 cents on Wednesday.

Dow futures were recently up 30 points or almost 0.2%. Japan's Nikkei was down 0.25%. China's Shanghai Composite and Hong Kong's Hang Seng were closed for a public holiday.

Crude oil futures cents inched up four cents this morning to US$59.67 a barrel. Spot gold bounced 50 cents to US$1,182.90 an ounce.


Hallelujah, the XJO's trading range survives another test. A tenth of a percentage point in Chinese manufacturing activity may not sound much, but it gave the bulls an excuse to buy resources and up we went. The 'will they/won't they' RBA rate pendulum swung back towards a cut overnight, which also helped. Trading: been a morning of short, sharp trades for me, with most lasting minutes rather than hours. There was enough volatility in CXB and EMH for several trades, not all profitable. Also traded the bounce in CVT. Been a good week. Would have enjoyed it more if my office chair hadn't developed an alarming tilt this morning. Even GCN looked like it was in an up-trend. Wife has gone to shop for a new "throne" while I conjure the funds to pay for it. Pretty sure I detected something other than deference in her choice of the word "throne"...