daytrading sep 20 afternoon

Thanks Endless. Half-time round-up:

Australian shares declined for a second day after a downgrade of Italy's credit rating dragged on US futures and Asian markets.

At lunchtime the ASX 200 was off 48 points or 1.2% at 4033 as cyclical stocks were sold off in another "flight from risk". Materials -1.6% and financials -1.5% copped the worst of the sell-off after overnight falls in commodity prices and Europe and and US banks.

Defensive stocks including health +0.2%, consumer staples +0.6% and telecoms +0.1% were the only sectors to avoid losses amid fears that Italy's unexpected Standard and Poor's downgrade overnight signalled further deterioration in the outlook for Europe's debt-ridden southern fringe.

"The Italian downgrade will just renew concerns about sovereign-debt issues spreading from Greece to Italy and Spain," Belinda Allen, senior investment analyst at Colonial First State Global Asset Management in Sydney, told Bloomberg. "The focus continues to be on making sure Greece has the liquidity to survive. There is no easy solution."

Asian markets retreated as US futures pointed to another negative start to tonight's trade. Japan's Nikkei dropped 1.4% as its resumed trade following Monday's holiday, Shanghai 0.25% and Hong Kong's Hang Seng 0.61%. Dow futures were recently down 84 points or 0.7%.

The deteriorating international outlook was a key reason why domestic interest rates remain on hold, the release of the minutes from the last Reserve Bank meeting this morning confirmed. The minutes showed the central bank weighing global concerns against moderate domestic growth.

"A key question for members was the extent to which recent global and domestic developments would reduce capacity pressures in the economy and, in due course, help to contain inflation," the minutes said. "Very little hard data were available, as yet, on which to base such judgements."

The dollar resumed its slide towards parity following the S&P downgrade. The Aussie was lately buying US$1.0182.

Crude oil futures fell another 38 cents this morning to US$85.53 a barrel. Spot gold was $1.10 ahead at US$1,782.10 an ounce.


Anyone remember when US futures were flat four days out of five during Australian trading hours? Wasn't that long ago. These days you have to trade with one eye on the ASX and one on Dow futures. The situation reminds me of Sophocles' memorable description of living with the male libido as like being "chained to a maniac". These days the maniac is mostly depressed during our trading hours. I managed scalps this morning in PLA and BTU. Lost patience with CCC and exited prematurely for brokerage. More recently added PNA near support, purely intraday.