Australian stocks this morning played out the familiar recent pattern of an early surge to a new yearly high followed by a fade into lunchtime.
At 1pm, the ASX 200 was up 20 points or 0.45% at 4542 after setting a new 2009 high of 4566 early in the session. With limited gains in the financial and mining sectors, and heavy falls in the gold sector, the gains were driven by property trusts, up 2.2%, IT +1.4%, industrials +1.2% and telecoms +1.1%.
Sentiment wasn't helped by cracks in the August employment figures. The unemployment rate was flat at 5.8 per cent, as expected, but the figures masked a sharp drop in full-time jobs. Total employment fell by 27,100 jobs, compared to a gain of 32,200 in July and the number of job losses was almost double what had been expected.
Asian markets were generally stronger this morning. Japan rose 1.36% and Hong Kong added 1.42% but Shanghai bucked the trend with a loss of 1.15%. Dow futures were at +14. The spot gold price dipped below US$990 but has recovered to $992.10. Crude oil put on 30 cents to reach $71.70.
Reasonable morning here. Buying LYC's weakness late yesterday proved profitable this morning. Grabbed a handful of GUD on post-dividend weakness. Lightened up on PIO - I like the buy depth and the chart but there's a capper holding it back.
Potential overnight holds: Perhaps MGR on the break to a new high. AFI if the ascending triangle breaks upwards. Similar set-up in SFR. BSL possible saucer bottom?
