daytrading may 15 afternoon

Thanks Roaminoz.

Half-time round-up:

Heavy falls in resource stocks pushed the Australian share market to a four-week low this morning as regional markets joined a global retreat.

At lunchtime the ASX 200 was down 37 points or 0.9% at 4260 and on track for its weakest close since April 11. Multi-month lows for oil and metals overnight drove the gold sector down 3.6%, metals & mining 2.9%, materials 2.6% and energy 2.1%. The only gains this morning came in defensive sectors: telecoms, utilities, property trusts and consumer staples. The Small Ords slumped 2%.

"Another day and there has been no resolution to the question of who takes Greece forward," NAB senior currency strategist Emma Lawson told Fairfax. "Markets are uneasy about who that might be, and their commitment to meeting... austerity requirements. Failure to comply could have far-reaching implications, not just for Greece, but contagion throughout Europe. This is being starkly seen in the rise in yields in Spain and Italy. It is these risks driving the present volatility in markets."

Japan's Nikkei fell 1.2%, Shanghai 0.98% and Hong Kong's Hang Seng 0.218%. Dow futures were recently up 20 points or 0.1%.

The dollar dipped further below parity with the US dollar after the minutes from the last Reserve Bank left the door open for further rate cuts. The bank said below-forecast economic growth and inflation justified this month's 50 basis point cut to the cash rate, neither of which are expected to turn around significantly in the near future. The dollar was lately buying 99.65 US cents.

Crude oil futures recovered 21 cents this morning to US$94.26 a barrel. Spot gold was $2 weaker at US$1,553.90 an ounce.


These market pullbacks always feel worse at the spec end of the market. The Small Ords is down 2% for the day and about 220 points or nearly 10% since the start of the month. That's a big move relative to the rest of the market. There will be plenty of upside when it bottoms but there's little evidence of that happening today. Meantime, I squeezed a few points of bounces in AGO, GUF and a lousy part-fill in ACL. Sticking to intraday stuff until the market settles down.