daytrading sep 20 afternoon

Thanks Endless.

Half-time round-up:

Retreating resource stocks dragged the Australian stock market lower today as a slowdown in Chinese manufacturing stretched into an 11th month.

At lunchtime the ASX 200 was 21 points or 0.5% weaker at 4397 after the 12.30pm EST release of China's monthly advance manufacturing report for September did little to improve the market mood. Resource stocks were the biggest weight on the market, with energy stocks falling 2.4%, metals & mining 1.4% and materials 1.2%.

The retreat extended after HSBC's monthly flash manufacturing purchasing manager's index showed minimal improvement from last month. The index edged up to 47.8 from 47.6, but recorded its 11th straight month of contraction. Read more here.

"China's manufacturing growth is still slowing, but the pace of slowdown is stabilising," HSBC economist Qu Hongbin told Fairfax. "Manufacturing activities remain lacklustre, thanks to weak new business flows and a longer than expected destocking process. This is adding more pressure to the labour market and has prompted Beijing to step up easing over the past weeks. The recent easing measures should be working to lead to a modest improvement from Q4 onwards."

Asian markets had already given up most of yesterday's gains after Japanese exports declined for a third month. Shanghai was lately down 1.03%, Hong Kong's Hang Seng 0.48% and Japan's Nikkei 0.7%. Dow futures were recently down 13 points or 0.1%.

"The monetary outlook and economic situation in Europe and Asia is more ambiguous than in the US," a global strategist for LGT Capital Management in Singapore told Bloomberg. "Chinese data are on the soft side and hopes for stimulating fiscal and monetary countermeasures have thus far disappointed."

Crude oil futures eased another 11 cents this morning to US$91.73 a barrel. Spot gold was $5.30 softer at US$1,767.10 an ounce. The dollar was buying $US1.0442.


Not a great result from the Chinese PMI - not good enough to encourage hope of a revival and not grim enough to guarantee the central bank will stimulate. Been a difficult morning at this trading desk. Caught in RED at higher levels this morning and now waiting for their response to the "please explain" they must have received by now unless the ASX is asleep at the wheel. (That couldn't happen, could it?) The response will make or break the trade. Various theories for the plunge over the last two days proposed on the stock thread, some attractive, some not. Got some AQP away at the peak but underwater on the rest. Caught the bounce in BUX - didn't see your alert, Giz, but probably benefitted from it, so thanks.