Shares overcame early losses to push further above 6300, even as Asian markets deteriorated.
The ASX 200 rallied nine points or 0.15% to 6309 by mid-session after falling 25 points in the opening flurry. Solid leads from Wall Street failed to translate into significant gains as Asian markets turned south. China's Shanghai Composite was lately down 0.84%, Hong Kong's Hang Seng 1.12% and Japan's Nikkei 0.38%. S&P 500 futures dropped three points or 0.11%.
The declines in Asia came amid nerves about emerging markets' exposure to rising US interest rates and a strengthening greenback. While the Turkish lira recovered overnight and the Dow broke a four-session losing run, analysts warned that Turkey and other countries with large foreign-currency debts faced challenges.
An overnight "rebound in the lira gave European banks and other emerging markets some respite," David Plank, head of Australian economics at ANZ, told CNBC. "However, it is fair to say that the saga is not over... The root cause of Turkey’s problems — a very large external deficit denominated in foreign currency – remains unaddressed by authorities... Investors will remain wary of possible contagion to the European banking system and will be keeping an eye on other countries with high levels of foreign-currency debt.”
A mixed local market saw strong gains in health stocks +2.6%, IT +1.8% and consumer staples +1.6% largely offset by declines in gold stocks -1.4%, energy -1.1% and sector heavyweights materials -0.7% and financials -0.4%.
Crude oil futures retreated 28 cents or 0.42% this morning to US$66.76 a barrel. Gold futures shed $4.20 or 0.35% to US$1,196.50 an ounce. The dollar was buying 72.11 US cents.
Trading: hands up if you were holding this morning's best-performing share on Monday and sold out at a hefty loss when it smashed through your stop-loss? No one? Damn you, TDO. That trade royally screwed my week before it had begun. Clawed back some of the loss with AGR this morning, but will do well to get back to break-even for the week. Shakes head, stares into distance.
