Thanks Endless. Half-time round-up:Australian shares were lower...

Thanks Endless. Half-time round-up:

Australian shares were lower at lunchtime for the fourth day in five but well off their lows on encouraging signs from US futures and Chinese shares.

At 1pm the benchmark index was down 30 points or 0.8% at 3934 after earlier trading as low as 3882. Financial stocks led the turnaround, recently trading 0.6% ahead. Mining stocks and small caps were the biggest losers. The metals & mining sector fell 2.2%, the Small Ordinaries 2.4% and gold stocks 3.1%.

"We're probably not down as much as we were calling early on," Cameron Peacock, market analyst IG markets, told Fairfax. "I think our opening call when we first came in this morning was about 3878. We are back above 3900 at the moment."

The index moderated initial losses as US futures clung to positive territory and Shanghai shares pulled away from their lowest level in 14 months. The Shanghai Composite fell 1.4% in early trade but was lately off just 0.45%. Hong Kong's Hang Seng lost 1.5%, while Japan's Nikkei was closed for a public holiday. South Korea's Kospi fell 4.8% in early trade. Dow futures were recently up 80 points or 0.75%.

The G20 this morning pledged a strong response to the global downturn. A statement released after talks in Washington ended this morning said the group of leading industrialised nations was "committed to a strong and coordinated international response to address the renewed challenges facing the global economy, notably from heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment."

The dollar recouped a little of its heavy overnight losses, rising half a cent to 97.94 US cents.

Crude oil futures rallied 66 cents this morning to US$80.99 a barrel. Spot gold was $1.10 stronger at US$1,745.60 an ounce.


A promising morning for anyone praying for a short-term market bottom. I was looking for another day or two of carnage but I'm very happy to be wrong, assuming little changes between now and 4pm. The early scramble delivered nice entries for bounce trades in GOR, PNA, IPL, AKI and AOH. FMG was harder work but has come good. Been a great week for bounce trading.