Quay Mid-Day Market Update

The Australian share market opening the week with a modest gain as a strong Wall Street lead combined with news of further stimulus out of China over the weekend to pushed the market higher on the open. However from around 10:30 we have seen selling enter the screen particularly across the banks. The big news out of China on Sunday with the People’s Bank of China cutting official rates by 25 basis points. We have seen a host of inconsistent and underperforming data on inflation, trade & manufacturing. Market Turnover into lunch was $1.645 billion. Activity lower than last week but decent after we saw a flood of interest return to the market, unfortunately a lot of it was selling pressure in the banks. A quiet day of economic releases with only the NAB Business conditions and confidence data out. Business Confidence unchanged while Business Conditions fell to 4 from 6 in March. Obviously the budget due for release tomorrow will be the major driver of the data moving forward. For the entire wrap please visit (VIEW LINK)