daytrading nov 1 afternoon

Thanks Endless.

Half-time round-up:

Australian shares surrendered this week's gains as domestic economic data disappointed, China's manufacturing report met expectations and institutions rejigged the books for the start of a new month.

At lunchtime the ASX 200 was down 40 points or 0.9% at 4477 as a broad sell-off weighed on all sectors. Industrials were the biggest drag, falling 1.6%. Also notably weak were the Small Ords -1.3%, materials -1% and consumer staples -1%.

The market dropped at the opening bell and failed to recover as the noon release of China's monthly official manufacturing report offered little impetus in either direction. The official PMI for October improved to 50.2 from 49.8 the previous month, broadly in line with economists' predictions. A later report showed the final version of HSBC's rival index at 49.5, ahead of forecasts.

The mood was brighter on Asian markets. Shanghai rallied 0.67%, Japan's Nikkei shook off early weakness to advance 0.05% and Hong Kong's Hang Seng dipped 0.17%. Dow futures were recently off 39 points or 0.2%.

"There's no reason to buy shares ahead of important events," such as the US presidential election, the chief fund officer at Ichiyoshi Asset Management in Japan told Bloomberg. "Lower corporate earnings forecasts stemming from the sluggish global economy have been factored into markets but the lingering slump in China and tensions between Japan and China may cause companies to cut forecasts further."

The morning's domestic economic reports did little to encourage buyers. Manufacturing contracted for an eighth month in October. Exports slumped 6.4% last quarter. Home prices declined 1% last month. Read more here.

Crude oil futures gave back 10 cents this morning at US$86.05 a barrel. Spot gold was $1.80 softer at US$1,720.10 an ounce. The dollar was buying $US1.0373.


Hmmmm... The market is copping a towelling for what feels like the first time in months. Dunno if it's just the institutions juggling ledgers after ruling off the books for last month, or something more. Shanghai doesn't appear concerned by the manufacturing reports. Any theories? I took the opening weakness as a buying opportunity in CGF (a favourite trader that doesn't return the love much these days) and IVC (solid defensive). Also had a dab at CTP.