Australian shares hit a four-week high this morning as the odds on an interest rate rise next week diminished.
At lunchtime the ASX 200 was ahead for a second day, up 30 points or 0.7% at 4489 after earlier breaking the 4500 mark for the first time since late June. The rises were led by consumer staples +1.4% and industrials +1%.
In economic news, a smaller-than-expected rise in the producer price index relieved the pressure for higher interest rates. The PPI climbed 0.3% last quarter - well short of the 0.8% rise tipped by economists. Analysts said the figures increased the likelihood that the cash rate will be held steady at next week's Reserve Bank meeting.
In company news, QBE shares slumped more than 5% after the insurer announced a profit downgrade. The company said first-half profit will be 40% lower than last year.
WES rallied more than 3% after its Coles supermarkets beat expectations when the annual result was announced this morning. Sales at Coles were up 4.3% over the last 12 months.
Asian markets were mostly higher after a positive lead from Wall Street on Friday. Japan's Nikkei advanced 1.22% and Hong Kong's Hang Seng was ahead 0.28% but Shanghai shed 0.35%. Dow futures were recently at +19.
Crude oil futures rallied 15 cents this morning to $79.13 a barrel. The spot gold price was $2.80 higher at $1,191.50 an ounce. The Aussie dollar was mixed against the major currencies, buying 0.8954 U.S. cents, down 0.13%.
Another bullish morning, but not one I traded with much flair. Re-entered PVE during this morning's sell-off after selling for brokerage on Friday. Currently modestly ahead. Entered QBE a little too early in the sell-off and may take a loss unless it recovers this arvo. Won't hold overnight unless there's a dramatic turn-around.
