Thanks Brit and morning crew. Half-time round-up: Resource...

Thanks Brit and morning crew.


Half-time round-up:

Resource stocks led a sharp retreat from yesterday's rate-cut inspired seven-month high as global growth and valuation concerns depressed commodity prices.  

At 1pm EST the ASX 200 was 71 points or 1.3% lower at 5283, but still ahead for the week following yesterday's 2.1% surge as the Reserve Bank cut the cash rate to a record low 1.75%.  The metals & mining sector was crunched 7.1% after iron ore turned fell more than 4% overnight and BHP was hit with a $58 billion lawsuit in Brazil. Also weak were materials -5.4%, gold -4.2% and energy -4.2%.

“In a now familiar theme, traders are becoming concerned about the possibility that the next volatile market swing, in this case downward, may not be too far away,” Ric Spooner, chief market analyst at CMC Markets, told Bloomberg. “Both US stock market valuations and commodity prices have risen to levels that could be difficult to sustain against the ongoing reality of sluggish global demand growth.”

Investors sought sanctuary in health care +0.8% and utilities +0.8%.

US futures turned lower as key Asian markets retreated for a sixth session. Dow futures were recently off 30 points or 0.17%. China's Shanghai Composite shed 0.29% and Hong Kong's Hang Seng 1.09%. Japan's Nikkei remained closed for a public holiday.

Crude oil futures retreated nine cents or 0.2% this morning to US$43.56 a barrel. Gold futures were $8.60 or 0.7% weaker at US$1,283.20 an ounce. The dollar was buying 74.82 US cents.


Ugly morning. Miners taken to the woodyard. A surprise rate cut would come in handy about now. Cough. Yesterday's rally was a joy , but came very much against the global trend over the last 24 hours. Unfortunately, the ASX is not significant enough to change the global dynamic. Trading: plenty of ways to lose money this morning and I may have found a couple of them. Traded the first minor bounce in AWC in the first hour successfully, but was too quick to get back in during the latest downleg. Looks overdone, but the big money will bully it where it will. Similar story with my SFR buy - should come good, but? Good win with SSM, but had to buy three times on the way down to get a good profit out of it. Turbulent times. Shouldn't complain.