The share market surged to its highest level since late January this morning as an economic gauge showed the country powering back from recession.
At lunchtime the ASX 200 was up 88 points or 1.9% at 4656 after substantial gains for the big banks and mining sectors. The gold sector topped the advances with a rise of 3%, ahead of financials +2.7%, metals & mining +2.3% and energy +2.3%.
In economic news, the Westpac-MI Leading Index of economic indicators rallied 1.3 points in December to 245.8. The annualised growth rate rose to 6.2% in December - 3.5% above its long-term trend.
Westpac Senior Economist, Matthew Hassan, quoted on Fairfax, said: "The Leading Index continues to point to a dramatic improvement in growth prospects. This large swing is not only the fastest reversal since the economy bounced out of recession in the mid-1970s but also puts the growth outlook back on a par with that seen in 2007 at the height of Australia's resources boom."
Nuclear-power related stocks helped Japan's Nikkei jag 2.06% higher this morning after President Obama announced federal loans to the nuclear power industry. Dow futures were recently at +5.
Crude oil futures were little changed at $77.08 a barrel, off 5 cents this morning. The spot gold price also drifted lower this morning, down $1.90 at $1,16.30 an ounce.
A middling morning here. Scalped PRY off the low again. Into LNG - potential double-bottom forming but needs volume. Small position in ARU. Just missed MMZ at 1.2 - pity.
