Daytrading Nov 20 afternoon

Thanks Endless and morning regulars.


Half-time round-up:

The share market extended its two-week slide beyond 200 points this morning as Chinese manufacturing activity hit a six-month low and resource stocks dragged the market towards a fourth straight loss.

At lunchtime the ASX 200 was off 22 points or 0.4% at 5347 and threatening an eighth fall from nine sessions since the market's short-term peak of 5549 on November 7. At its low this morning the index was 218 points below that peak. A mixed morning saw advances in property trusts +0.3%, financials +0.2% and industrials +0.1% dwarfed by declines in gold -2.9%, metals & mining -1.7% and consumer staples -1.6%.

The market pared its losses before the 12.45pm EST release of HSBC's Chinese manufacturing purchasing managers' index showed factory activity stalled this month. The preliminary reading fell to 50 from a final October reading of 50.4. Analysts had predicted the index would fall to 50.2.

China's Shanghai Composite was lately down 0.53%, Hong Kong's Hang Seng down 0.43% and Japan's Nikkei up 0.24%. Dow futures were down 13 points or less than 0.1%.

Crude oil futures recovered seven cents this morning to US$74.51 a barrel. Spot gold was 20 cents weaker at US$1,181.30 an ounce. The dollar was buying 85.97 US cents.


No real surprise in that Chinese factory gauge - all recent indicators pointed to a likely decline. The muted market reaction suggests traders were more pessimistic than the economists. Wonder what effect the news is having on iron ore? Trading: turning into a nice morning. Took OIL late yesterday and got out near the high today. Got something out of the rebound in SRR. Also took IPL, TLG, PRY and GOR this morning - ahead on two, flat on the others.