Shares were higher for the 11th day in 12 at lunchtime as regional markets responded to Friday's positive US lead.
At 1pm the ASX 200 was ahead 33 points or 0.7% at 4895 and trading near its highest level since late February. Resources and small caps continued to outperform defensive stocks and blue chips, a sign that risk appetite remains strong despite a virtually unbroken two-and-a-half-week rally from the post-Japanese-earthquake low. The metals & mining sector rallied 1.2%, materials 1.2% and the Small Ordinaries 1.1%.
The odds on interest rate rises later in the year rose following the biggest jump in monthly inflation in 14 months. The TDS-MI inflation gauge vaulted 0.6% last month from 0.2% in February. The rise was in large part due to an 11.3% increase in the price of fruit and vegetables following natural disasters in Queensland and Victoria.
An 11th straight monthly rise in job ads underlined strength in the jobs market. The ANZ Job Advertisements index increase by 1.3% last month.
The dollar pulled back from a fresh overnight post-float high, trading recently at US $1.0387 after earlier touching US $1.0423.
Asian markets pushed higher this morning but US futures weakened. Japan's Nikkei was ahead 0.72% and Hong Kong's Hang Seng up 1.09%. Shanghai was closed for a bank holiday. Dow futures were recently at -29.
Crude oil futures rallied 58 cents or 0.5% this morning to US $108.52 a barrel. Spot gold was $1.90 stronger at US $1,430 an ounce.
And so the armchair ride for investors continues. All very pleasant but this rally since the middle of last month is starting to look long in the tooth. I expect Wall Street to find something to fret about shortly, lol. In the meantime I clipped tickets in CXY, BNO and FAS this morning.
