Australian shares are heading for their biggest two-day surge this year, supported by positive US futures and fresh signs that the worst of the economic downturn is over.
At lunchtime, the ASX 200 was up 37 points or 1% at 3904 as shares built on yesterday's 3.5% rise, the index's biggest one-day percentage gain in more than seven months. There were gains across the board, led by IT (+2.5%), industrials (+2.3%) and energy (+1.6%).
Sentiment was boosted this morning by news that the annualised growth rate of a local index of economic activity contracted by 3.9% in May, still negative but improving for the third month since February's low.
In Asia, the Nikkei added 0.46% and the Hang Seng 0.92%. US futures were higher after Intel's after-market profit report raised hopes for the IT sector. Nasdaq futures were recently up 1.62% and Dow futures were +53. Crude oil futures regained the $60 mark, recently trading up around 70 cents at $60.08.
Been a bitter-sweet morning here. Adding LNC at the close yesterday was smart - selling in the mid-$1.60s today wasn't. Also stupid: not buying either SLA or RBM yesterday. Thought QBE might crack the $20 resistance level today - bought at open, out for a small loss when it turned south. Took profits on ILU - still think it will run higher over the next month but will wait for a lower re-entry opp. Added NWH as a range trade. Also took a first nibble at SRI at 7.3 on retrace.
Overnight holds: GOA looks very nice today. RBM may have legs, although it's nearing the old resistance level. Self-interest corner: NWH looks a reasonable chance to push towards the top of its range. As mentioned this morning, the oilers may be ready to turn north - haven't settled on a candidate yet. Any thoughts?
