The ASX 200 flirted with 6000 this morning for the third time in six weeks before falling back as Chinese trade data disappointed.
At lunchtime the benchmark index was trading three points or less than 0.1% lower at 5965 after earlier running as high as 5996.4. The index touched 5995 three weeks ago and 5996.9 on March 3 but has not seen 6000 since February 2008, during the early months of the global financial crisis.
Gold stocks advanced 3% to lead the rally after the precious metal broke a three-session losing run on Friday. Spot gold was lately $1.80 weaker for the session at US$1,205.50 an ounce. Other notable sector gains included health +0.5%, property trusts +0.5% and telecoms +0.5%. The metals & mining sector dropped 1.2%, materials 1.1% and industrials 0.6%.
The market turned negative after China released trade figures showing sharp year-on-year declines in both exports and imports last month. Exports fell 14.6% and imports 12.7%. The weak readings resurrected concerns about Chinese demand for Australian raw materials, driving the dollar down more than half a cent to 76.02 US cents.
Asian markets extended last week's sharp rally despite the Chinese trade news. China's Shanghai Composite, which has put on more than 8% in two weeks, was last up 1.09%. Hong Kong's Hang Seng, which gained 7.9% last week, was up 0.32%. Japan's Nikkei, lately the poor relation, was off 0.13%. Dow futures were nine points or less than 0.1% in the red.
“In this environment of global central-bank liquidity, easing, low rates for the long term, it’s very good for risk assets including equities,” Steve Goldman, fund manager at Kapstream Capital, told Bloomberg.
Crude oil futures rallied 14 cents or 0.3% this morning to US$51.78 a barrel.
I'm bewildered by the action in RTR. They appoint Nathan Tinkler as corporate advisor and the share price goes up? Is it 2008? Am I in... (dramatic pause) some kind of HOT TUB TIME MACHINE?!! I'm sure they could get Alan Bond and Eddy Groves for less. Elsewhere, the Chinese data pulled the rug from under the latest assault on 6000. Trading: nice win in HFR. Jury still out on buys in CMP and MIN.
