The share market punched to its highest level since the GFC as the dollar plumbed a 13-month low and regional markets steadied after yesterday's wobble.
The ASX 200 surged 50 points or 0.8% to 6152 and had a ten-year closing high within reach with a close above 6135.5 this afternoon. The index's morning peak at 6153.6 was its highest point since the financial crisis began to unfold in 2008.
Today's currency-driven rally might have been stronger, but for a 4.4% slump in the telecoms sector after Telstra announced 8,000 staff will be laid off to reduce costs. The financials sector led the advance, rising 1.8%. Also strong were IT +1.5%, utilities +0.9% and energy +0.9%.
Calm was restored to Asian markets following yesterday's dramatic 5% plunge on China's Shanghai Composite after the US threatened fresh tariffs Chinese imports. The Composite was last off 0.46%. Hong Kong's Hang Seng edged up 0.06% and Japan's Nikkei 0.04%. S&P 500 futures were recently off 0.5 points or 0.02%.
The dollar was hit overnight by fears of a slowdown in Chinese demand for raw commodities if the US puts the brakes on Chinese imports. The dollar was lately buying 73.98 US cents.
Crude oil futures bounced 28 cents or 0.43% this morning to US$65.36 a barrel. Gold futures drifted down $1.60 or 0.13% to US$1,277 an ounce.
Trading: another day of slim pickings. Be glad when this month is over. Thank God for the plunge in TTT - caught the low (more luck than talent) and rode the bounce for a good wage. Go back a decade and a half and you used to see that sort of dive on a couple of shares each session. I had a whole strategy based on catching those bounces. The instos were still refining their buy/sell algos and prices often got pushed down to stupid levels. Easy money. Of course, it didn't last - the algos got smarter. Nothing lasts in this game if there is an opportunity to make money. Got to evolve your thinking all the time.
