Shares extended yesterday's gains after a broadly positive night on world markets offered traders further encouragement to buy near one-month lows.
The ASX 200 continued its recovery from a two-week slump with a rise of 18 points or 0.3% to 6055. The index closed below 6000 on Monday for the first time since early December, but reversed sharply yesterday with its biggest gain since October.
This morning's advance was led by energy +0.9%, health +0.8% and utilities +0.6%. Financials put on 0.4%, offsetting a 0.4% decline in metals & mining.
Overnight, US markets closed mixed as traders mulled the potential fallout from a trade war if Asian nations retaliate against the Trump administration's decision to impose tariffs on some imports. The S&P 500 added 0.22%, while the Dow eased 0.01%. S&P 500 futures were recently up one point or 0.04%.
A mixed morning in Asia saw China's Shanghai Composite up 0.17%, Hong Kong's Hang Seng down 0.06% and Japan's Nikkei down 0.39%.
Crude oil futures edged down four cents or 0.06% this morning to US$64.43 a barrel. Gold futures improved $3.30 or 0.25% to US$1,345 an ounce. The dollar was buying 80.04 US cents.
Overall market sentiment seems much brighter since Monday's retest of the 6000 level. Feels like we have a base now for further gains if overseas markets play nice. Looks like some select bargain-hunting among the specs after Monday's horror show. Well done if you got the lows. Trading: suffered one of those distracted mornings when I spent more time on the phone discussing prawns and washing machines (separately) than focussing on the market. In the rare interludes I drew a wage from AEE and 3DP.
