Australian shares had their best session in a month this morning as the battered resouces sector snapped back from last week's heavy losses.
At lunchtime the ASX 200 was ahead 65 points or 1.44% at 4589, fuelled by gains in the gold sector, +4.5%, metals & mining +3.8%, materials +3.6%, property trusts +3.2% and energy 2.6%.
The financial sector was up 1% despite the prospect of another interest rate rise this afternoon and evidence that three consecutive rate rises have undermined business confidence. The NAB's monthly business survey of 400 companies this morning showed a fall in confidence in December from 19 points to 8. However, business conditions were stable and labour conditions improved, suggesting businesses are still hiring.
"The RBA actions and the high Australian dollar are starting to moderate expectations," said NAB chief economist Alan Oster. "The domestic economy continues to show significant momentum but that confidence has started to move back to more realistic levels."
Asian markets advanced. Japan's Nikkei piled on 1.75%, Shanghai 1% and Hong Kong's Hang Seng 0.93%. Dow futures were at +1.
Crude oil futures edged 25 cents higher to $75.10 a barrel this morning. The spot gold price pared this morning's heady gains, sliding $3.60 to trade recently at $1,102.40 an ounce.
Well done to all those with the nads to hold overnight - fortune favoured the brave this morning. I gave my stomach lining a good workout this morning on WDS. It all ended profitably but I could have traded it sooo much better. Bought too soon, sold too early. Also rode the early run on ILU and trimmed my one overnight hold in MML. Still holding half in case this global turnaround has some legs.
