Australian shares touched an 18-month high today ahead of this afternoon's central bank cash rate announcement.
At lunchtime the ASX 200 was up 45 points or 0.9% at 4953, with all sectors except health, industrials and telecoms trading higher. Resource sectors led the advances - energy +1.9%, metals & mining +1.9% and materials +1.7%.
In economic news, the number of jobs advertised in Australia continues to rise, pointing to increasing demand for staff. Job ads rose 1.8% in March, building on a 19.1% leap in February, ANZ said in its monthly survey released this morning.
"This month's continuation in job ads growth suggests labour demand is strengthening in early 2010 and confirms the rapid improvement in economic conditions in Australia over the past six months," ANZ chief economist Warren Hogan told Fairfax.
Business conditions improved last quarter, the Australian Chamber of Commerce and Industry announced this morning. The ACCI survey of investor confidence showed business conditions, sales and profitability all rising. The business conditions index rose to its highest level since 2008, but remained below its five-year average. Profitability rallied to 48.6 from 47.6, but remained below the 50-point mark, indicating that profits continued to fall.
Asian markets were mixed. Japan's Nikkei lost 0.41% in morning trade and Shanghai edged 0.21% higher. Dow futures were recently at -19.
Oil and gold gave back some of their overnight gains this morning as the U.S. dollar rallied. Crude oil futures dropped 37 cents to $86.42 a barrel. The spot gold price was $3.80 lower at $1,127.80 an ounce.
Been a great morning for momentum traders. Less around for natural swing/bounce traders like myself. Just one bounce trade completed - OBJ for a modest day's wage. Also a small pos in RDR.
