Shares are higher for the fourth session in five after strong overnight metals prices lit a fire under resource stocks.
At lunchtime the ASX 200 was ahead 38 points or 0.8% at 4690, with gold stocks (+2.3%), metals & mining (+1.5%), materials (+1.4%) and small caps (+1.3%) topping the sector gains. Defensive health and telecom stocks were the only sectors to trade lower.
"We're seeing strength based on the terrific moves up in the metals complex overnight - both industrial and precious metals moved up strongly," CMC Markets chief market strategist Michael McCarthy told Fairfax.
Most regional markets were little changed this morning, despite overnight gains on Wall Street. Japan's Nikkei was 0.15% weaker after days of volatile trade, Shanghai was up 0.02% and Hong Kong's Hang Seng ahead 0.67%. Dow futures were recently at a neutral -2.
Crude oil futures traded sideways this morning, recently 9 cents weaker at $105.41 a barrel. Spot gold was $1.90 softer at $1,437.10 an ounce. The dollar was buying US $1.0137.
A bullish morning here despite the lack of participation in Asia. Trading volumes have been weak here this week - look for a pick-up today for confirmation that this up-leg has more in it. Been a frustrating morning here, summed up by EGO - was in the queue at 3.7 and just missed a fill. Waited too long on PBT and missed the bounce. Only one buy so far - CMJ on the break under 2.80.
