A bounce in commodity prices and an upgrade from the IMF has helped Australian shares claw back some of this week's heavy losses.
Gains in the gold sector (2.2%), metals & mining (1.8%), materials (1.5%) and energy (1.2%) saw the ASX 200 add 23 points or 0.6% this morning. The traditional defensive sectors of health, telecoms and utilities were all in the red, suggesting a greater appetite for risk in the market.
The International Monetary Fund raised Australia's economic growth forecasts. The fund said Australia's economy will shrink 0.5% this year, compared with a 1.4% drop predicted in April, and will grow 1.5% next year, up from a previous prediction of a 0.6% gain.
Asian markets advanced. The Nikkei rose 1.58% and the Hang Seng 1.23%. Dow futures were recently +1. Gold continued to climb off Monday's five-week low, adding $3.50 this morning to $935.30. Oil drifted another 20 cents lower to $68.45.
A scrappy morning's trading here. Boarded QAN at take-off but blundered out of an emergency exit long before it reached its destination. Should have stayed in my seat. Thought UGL looked ripe for a run after three days of consolidation but sold for a small loss when it turned red. May try again later this week. Added UMC - hopefully a hold for a few days. Scalped TSE and NUF twice. Been a very slow week.
