Modest gains on Wall St and commodity markets offer Australian traders some relief today after the week-long rout on the local market.
A break in a run of disappointing economic figures saw US stocks creep higher with gains in the banks and health sector. The S&P 500 added 0.84% and the Dow 0.69%, while the Nasdaq slipped 0.02%. An important unemployment indicator fell by the most since November 2001, breaking a streak of 21 straight increases, and there was an uptick in a measure of manufacturing output.
Oil benefitted from renewed hopes of economic recovery in the US and an increase in Chinese consumption last month. Crude rose 0.5% to $71.22. "Another green shoot, another rally," said one trading executive. "Oil continues to look at the news through bullish-colored glasses."
Gold was back under pressure, recently trading down 0.5% at $932. Base metals crept higher but most remain well off this month's peaks. In London, copper rose 0.4%, aluminium 0.8%, nickel 1.41% and zinc 0.77%.
Futures traders reckon there's enough there to break our four-day losing streak. The SPI added 18 points to 3879.
It's a relief to start the trading day in the green but it's too soon to throw the kitchen sink at the market. Two weeks ago, those US economic figures would have sent the Dow up 200+ points IMO. Sentiment remains shaky. But let's enjoy a positive end to a tough week.
