Market wrap: US markets reached new 2009 highs overnight but pared gains before the close.
The S&P and Dow added 0.61% and 0.37% respectively after a better-than-expected Treasury auction, but both finished well off their session highs.
Energy stocks continued to climb after crude oil broke above $73. Oil was recently 2% higher at $72.42 after the International Energy Agency raised its forecast for world oil demand for the first time in 10 months.
A strong night for base metals saw copper up 3.3% and zinc, nickel, lead and aluminium all hit new 2009 closing highs. Gold continues to track sideways but bounced back from two-week lows as the US dollar weakened. After dipping below $945, gold was recently at $954.50, back where it was this time yesterday.
Despite all this positive news, futures traders have priced in a pretty small rise on the local market. The SPI finished 6 points higher at 4060.
The good news just keeps coming on commodity markets, but the US action remains unconvincing. There was no follow-through when the market hit new highs. The mining sector should be strong again here this morning but it has been a very good week, so we may see some end-of-week profit taking.
