Market wrap: another choppy night on Wall Street climaxed with a late rally and gains in the major indexes of 0.4 - 1%. Violent mood swings in financial stocks have driven the indexes all week, and last night was no exception, with banking stocks gaining 6.5%.
REITs put on 4.7% and oilers and gold miners found buyers on the back of rises in the price of crude and gold. Oil gained 1.5% to $49.67. Gold broke up out of its trading range, gaining 1.5% to recently trade at $903, its highest-level in two-and-a-half weeks. The recent rally in base metals appears under pressure, with more losses overnight as the grim economic outlook takes a toll. Metal prices remain well off their lows but the powerful two-month rally has faded in the last week.
Our market enjoyed an unexpectedly bullish session yesterday and futures traders expect a subdued day ahead. The SPI closed 13 points up at 3760.
US markets have been volatile and directionless all week, which suggests uncertainty. It wouldn't take much in these conditions to spark a sell-off, so it's not a time to hold too many stocks overnight IMO. That said, uranium seems to be the flavour of the day and I'm holding WME after it broke resistance late yesterday.
