Daytrading November 10 afternoon

Thanks Brit and morning crew.


Half-time round-up:

Australian shares marked a five-week low this morning as weak Chinese inflation and a decline in domestic business confidence compounded an overnight global retreat from equities.

At 1pm EST the ASX 200 was trading 40 points or 0.8% lower at 5079, a level last seen on October 5. Gains in gold stocks +1.3% and metals & mining +0.3% were dwarfed by falls in IT -2.4%, property trusts -2%, financials -1.3%,  and industrials -1.2%.

“In what is now a regular event, global markets sunk overnight and are pricing in the worst of the US and China,” Michael McCarthy, chief market strategist at CMC Markets, told Bloomberg. “According to this view, China continues to weaken toward implosion, but not far or fast enough to head off a lift in US rates.”

Business confidence deteriorated last month, according to NAB's monthly survey. Sentiment fell to +2 from +5 in September. Conditions held steady at +9.

"The confidence index eased back in the month, unwinding much of the gain following the Government's leadership resolution and a paring-back of concerns about emerging markets," NAB  economist Alan Oster told Fairfax. "While the Government's leadership resolution appeared to have a notable - albeit temporary - effect, it is difficult to disentangle this from concerns about growth in emerging markets and financial market volatility which is likely to have influenced confidence with varying degrees of intensity in recent months."

China's consumer price index for last month came in lower than predicted at 1.3%, versus a September reading of 1.6% and expectations for a reading of 1.5%. The producer price index held steady at -5.9%.

China's Shanghai Composite dropped 0.82%, Hong Kong's Hang Seng 1.29% and Japan's Nikkei 0.71%. Dow futures were recently up 17 points or 0.1%.

Crude oil futures rallied 21 cents this morning to US$44.08 a barrel. Spot gold firmed $5 to US$1,093.10 an ounce. The dollar was buying 70.5 US cents.


No sign of a bounce yet on the broader market after further evidence that China is slowing. At this rate we're pointing towards a third straight losing week. Trading: IVO coming good from yesterday - one of the more straight-forward opportunities in recent times. Traded the bounce in BLD. Ahead in AVQ and SVW. Lately picked up a few NAG.