Market wrap: early gains faded quickly on Wall Street overnight as the major indexes ended a lacklustre session down 0.5 - 1.3%. Concerns about the inflationary aspects of the Fed's plan to print more money weighed on financial stocks, with indexes sagging up to 10%. REITs slid nearly 6% but there were solid gains for miners as investors hedged against inflation by buying commodities.
Gold built on yesterday's huge spike, recently trading at $959. Oil smashed through the old technical resistance, climbing more than 7% to $51.23, its highest level since November. Base metals also rallied strongly, with copper hitting a four-month high.
The improving outlook for resources explains why our futures remain marginally bullish with the SPI up 13 points at 3501.
Resources is the obvious sector to target today as the fundamentals continue to improve. However, it's important to note that this week's big spike in the Aussie dollar erodes some of the gain in commodity prices for exporters.
