Daytrading October 26 afternoon

Thanks Brit and morning regulars.


Half-time round-up:

The ASX 200 improved for a fourth day but topped out short of the 5400 level amid concerns that China's Friday rate cut indicates continuing headwinds for global growth.

At 1pm EST the ASX 200 was trading nine points or 0.2% ahead at 5361 after peaking at 5385 in the first 15 minutes of trade. Gains in metals & mining +0.7%, health +0.6%, materials +0.5% and IT +0.8% were partly offset by declines in telecoms -0.8%, utilities -0.4% and industrials -0.3%.

Chinese policy-makers gathered this morning for the start of the annual plenum to set growth targets and economic policy for next year. The People's Bank of China cut its key lending rate by 25 basis points on Friday and reduced the amount of capital that lenders must hold in reserve.

“China’s policy easing suggests the Chinese economy still faces significant downward pressure,” ANZ Banking Group analysts told Bloomberg. “While central bank actions across the G10 have typically been viewed in a ‘bad-news-is-good’ framework, the easing from the [People's Bank of China] late on Friday was seen as a foreboding sign for global growth.”

The Shanghai Composite rallied 0.94%, Hong Kong's Hang Seng 0.72% and Japan's Nikkei 1.14%. Dow futures were recently down 23 points or more than 0.1%.

Crude oil futures eased three cents or 0.1% this morning to US$44.57 a barrel. Spot gold firmed 80 cents to US$1,164.80 an ounce. The dollar was buying 72.45 US cents.


Bit of a fizzer so far as the XJO is concerned. Top end of the market never really got out of second gear. Plenty of action down below, however, even if I haven't troubled the scorer yet. Had a few swings but still to connect.