Market wrap: Rallying resources are likely to support our market today despite an uncertain night on Wall Street.
Traders will weigh price gains in oil, gold and some base metals against a mixed session for the major U.S. stock indexes. Trading on Wall Street was similar to the last two sessions in Australia, with early advances fading. The Dow Jones closed 0.21% higher, the S&P 500 gained 0.44% and the Nasdaq lost 0.01%.
Banks were the standout in the U.S., rising 1.98%. Oilers and oil services companies also made progress.
European markets set new 2009 highs. The FTSE rose 0.94%, the CAC 1.22% and the DAX 1.25%.
A weak US dollar and predictions of rising demand helped crude oil futures rally 2.09% to $73.11. The International Energy Agency raised its bearish demand outlook for oil for 2009 and 2010. The great gold rally continued as the metal's appeal as a hedge against the US dollar remained intact. The spot price was recently more than $6 higher at $1,055.10.
Copper retreated in thin London trade but rose 0.67% in the US. In London, aluminium hit a three-week high, up 1.41%, lead rallied 1.47% and zinc 2.31% but nickel slipped 0.27% and tin lost 1.52%.
Futures traders expect a positive open to our market today after two straight losing sessions. The SPI futures index was 19 points higher at 4777.
TRADING THEMES TODAY
UNCERTAINTY: The action in the US last night and during the last two local sessions suggest a note of caution creeping onto global markets as the US Q3 reporting season gets underway. Stocks have rallied hard and investors are understandably unwilling to add to their bets until confirmation that US share prices are supported by earnings.
RESOURCES: There were solid gains for gold, oil, aluminium, lead and zinc overnight.
ECONOMIC NEWS: Locally, the monthly NAB Business Survey is out at 12.30 am, providing an insight into business confidence. The August reading was the highest since 2003. It's quiet again in the US tonight but there are consumer confidence figures due, as well as more Q3 earnings reports.
