Shares once again struggled to build on early gains amid pressure from resource stocks and US equity futures.
The ASX 200 advanced almost 22 points before paring its rise to six points or 0.1% at 5670 at the the halfway mark of the session. The action was typical of a week where the local market has failed to cement strong openings. While utilities +1%, IT +0.5% and financials +0.4% made headway, the index was hampered by declines in gold stocks -2.1%, metals & mining -1% and energy -0.5%.
Overnight, the S&P 500 put on 0.41% in the US as President Trump outlined plans to cut corporate taxes. However, US futures experienced mild pressure this morning as market commentators predicted a rocky road for the proposed legislation. S&P futures were lately down 1.5 points or 0.07%.
"As negotiations intensify in coming weeks significant procedural, fiscal and political constraints are likely to become more apparent," Westpac economist Richard Franulovich told Fairfax. "Given the obstacles the final package is likely to be smaller than today's plan."
Asian markets struggled for traction. China's Shanghai Composite eased 0.19% and Hong Kong's Hang Seng 0.32%. Japan's Nikkei improved 0.29%.
Crude oil futures declined 19 cents or 0.36% this morning to US$51.95 a barrel. Gold futures slid $2.10 or 0.16% to US$1,285.80 an ounce. The dollar was buying 78.28 US cents.
Been a huge week for the specs and a fizzer at the big end - XJO has had grease on its boots all week. Dollar weakness is likely part of the problem - currency movements can be just as important for overseas investors as falls in share prices. Trading: got into TEG late yesterday and enjoyed today's recovery. Choppy ride in CKA.
