Australian stocks flirted with the 5800 level for the second time this week before paring gains as tensions over North Korea weighed on Asian markets.
The ASX 200 rose as high as 5796 and was last up 11 points or 0.2% at 5777 at the halfway mark as traders bought gold stocks +2.1% and telecoms +0.6%. Also strong as earnings season rumbled on were IT +1.2%, materials +0.5% and industrials +0.5%.
Geopolitical tensions simmered down overnight after the US Defense Secretary tempered President Trump's threat to unleash "fire and fury" if North Korea continued to threaten the US.
"US Defense Secretary James Mattis looked to clarify the United States' position and perhaps take some of the edge off the rhetoric, but the warning was no less pointed," IG analyst John Kicklighter told Fairfax. "We have seen risk aversion through the common routes (Treasuries, Gold and even the Swiss Franc); but if this cold war looks like it is turning 'hot', the flight to safety will turn systemic."
A deteriorating session in Asia saw China's Shanghai Composite drop 0.08%, Hong Kong's Hang Seng 0.33% and Japan's Nikkei 1.28%. Dow futures were recently off 30 points or 0.14%.
Crude oil futures dipped two cents or 0.04% this morning to US$49.54 a barrel. Gold futures put on another $3.30 or 0.26% to US$1,282.60 an ounce. The dollar was buying 78.9 US cents.
Trading: bounce profits taken in WHA and UTR. Watching AVQ. Thinking about trading IAM - don't tell Endless.
