The prospect of further interest rate cuts has helped shares shrug off a monster NAB capital raising and rise for the seventh straight day.
At lunchtime, the ASX 200 was up 17 points or 0.42% at 4067 after news that inflation hit its lowest level on an annual basis in 10 years last quarter. According to Fairfax websites, "The annual CPI rate also fell below the Reserve Bank's target range on an annual basis, leaving the door open for more interest rate cuts."
Financial stocks were crimped by NAB's announcement of a $2.75 billion capital raising. But the sector's fall of 0.3% was balanced by gains in industrials (+1.7%), telecoms (+1.4%) and utilities (+1.3%).
Asian markets were marginally higher. The Nikkei advanced 0.16% and the Hang Seng added 0.26%. U.S. futures were mixed, with the Dow down 29 points or 0.33% and Nasdaq futures up 2.25 points or 0.14%. Oil continued its rise, trading recently at $65.07, up 35 cents this morning.
A quiet morning here as I'm winding down for a week's break next week. (For once, it would be great to spend seven days without wondering about the location of the nearest computer terminal.) Skinny scalp in ERH. Bought NUF at the $9 support but the sellers remain stubborn. Should have bought APN at the open - it followed FXJ and WAN north. Have a few buy orders in the market but no other hits as yet.
Potential overnight holds: I'm trying to clear the books and so probably won't buy, but if I was... HFA looks great. APN also promising. MND if it cracks $12 and holds. Also, the market seems to like the CEY quarterly.
