Market wrap: this month's global rally showed signs of fatigue on Friday as US markets surrendered much of last week's gains. The major indexes lost up to 2% on Friday but still ended the week ahead for a second consecutive week. REITs and financials again led US markets down on Friday on inflation worries. Resource stocks also lost ground.
Oil retreated 1% during a volatile session but remains near recent highs. Gold was marginally weaker but also held near last week's high. The picture was similar for most base metals: minor losses near recent highs.
At 3467, the SPI reckons we need to lose 20 points at the open today. A lot of small and micro-caps fell away badly at the end of last week and it will be interesting to see whether there is a bounce this week or the episode was merely a repeat of the December/January "running of the dogs". The rump end of the local REIT sector is a bottom-picker's dream this morning, but it's a dangerous game and there may be tears before bedtime.
