Australian shares continued to set new 20-month highs this morning as regional markets struggled to extend gains following Wall Street's best ever start to a year.
At lunchtime the ASX 200 was 22 points or 0.5% higher at 4728, a level last seen in May 2011. Risk appetite remained strong, with defensive stocks accounting for the few sectors to lose ground, while resource stocks, industrials, financials and small caps all advanced.
"It is very much the growth areas of the market that are leading the charge," CommSec chief economist Craig James told Fairfax. "The fact that the US is dealing with its budget issues and stepping back from the brink is good news for Australia."
US futures receded this morning following the Dow's record-breaking start to the trading year. Last night's 308-point rally was the index's best opening session on record. Dow futures were lately down 29 points or 0.2%.
Hong Kong's Hang Seng inched up 0.01% this morning while markets in Singapore and Malaysia advanced at least 0.5%. Exchanges in China and Japan remained closed for public holidays.
Crude oil futures weakened 29 cents this morning to US$92.65 a barrel. Spot gold was 30 cents softer at US$1,685.60 an ounce. The dollar was buying $US1.0486.
Arrgh, what a slow morning. What action there was seemed to be concentrated in a handful of stocks and many of those looked toppy. I'm hanging out for a decent pullback in the market to bring prices back to more appealing entry levels. The risk:reward ratio is none too appealing at present. Been a mild softening in risk assets this morning. Having been rogered in KOR yesterday, I bought a few more this morning and failed to take the blink-and-you-missed-it exit opportunity.
