Market wrap: Roaring commodity prices and a late late rally on Wall Street have set up the Australian stock market for a flying start to the week.
Futures traders drove the SPI up 46 points to 3845 after a flurry of end-of-month window dressing in the last hour of trade in the US saw the major indexes add around 1.2 - 1.3% on Friday.
Miners benefitted as base metals, oil and gold all charged ahead and the US dollar continued to sink. The Aussie dollar broke back through 80 cents. Oil added nearly 2% to complete its biggest monthly rise in 10 years. Crude futures surged 30% during May to their highest level since November.
Gold jagged nearly 2% higher to $979.60 and looks primed for another attempt to break through the $1000 mark. Copper looks set to follow nickel and lead and break out of the trading range of the last few months after base metals surged higher on Friday. Aluminium and zinc also gained but lack the momentum of the others so far.
The major buying themes for the last few weeks look good to continue today: oil, gold, base metals. As always, the challenge is to find stocks at a reasonable entry price. The opening price on bullish days like this is very often not the best of the day. At least some of Friday's action here and in the US smelled like fund managers prettying up the books for the monthly report to investors. Some of that may unwind this morning.
Still, there are opportunities today. Good luck to all.
