Shares have inched higher for a second session as gains in the big banks and select yield sectors outweigh falls in resource stocks.
At lunchtime the ASX 200 was trading five points or 0.1% higher at 5974 after earlier nudging to within 2o points of the 6000 level, last seen in early 2008. Financials +0.4%, consumer discretionary +0.5% and utilities +0.3% accounted for much of the strength. IT -0.7%, energy -0.5% and metals & mining -0.3% led the declines.
The market edged higher despite a weak lead from Wall Street following unexpectedly bright economic data and a pick-up in inflation.
"A reasonable CPI [consumer price index] read and very strong housing sales in the US during February have the market thinking about US interest rate increases," CMC chief analyst Ric Spooner told Fairfax. "This led to a decline in US stock markets."
China's Shanghai Composite dropped 0.7%, Hong Kong's Hang Seng advanced 0.15% and Japan's Nikkei rose 0.04%. Dow futures were recently ahead three points or less than 0.1%.
Crude oil futures cents gained six cents this morning to US$47.57 a barrel. Spot gold was $1.80 weaker at US$1,189.60 an ounce. The dollar was buying 78.87 US cents.
Trading: plenty of opportunities to suit all approaches. Missed MJP for the second day running - can't seem to get in sync with that one. MBN gave a very easy pip off the low for a good wage - low-risk (DT) entry level so had a decent stake. Swung and missed at quite a few since then. Can afford to be patient in these conditions.
