Australian shares edged to a fresh one-month high this morning in subdued trade as Shanghai retreated for the first session in seven.
At lunchtime the ASX 200 was higher for a third day, up 19 points or 0.4% at 4505 as strength in financials, telecoms and property trusts countered weakness in mining stocks and IT.
Market commentators suggested uncertainty over the looming federal election was starting to affect trading volumes and volatility.
"We're very much in election mode at the moment," RBS Morgans director of equities Bill Chatterton told Fairfax websites. "When you put markets in that mode they, generally speaking, tend not to do that much until the election has been resolved. I don't think we're going to get dramatic change during that period."
In company news, IAG this morning became the second major Australian insurer to issue a profit warning in two days. Shares in IAG fell more than 4% after its fourth profit downgrade this year.
Asian markets were mostly higher but China trimmed recent gains. Japan's Nikkei was up 0.13%, Hong Kong's Hang Seng +0.22% but Shanghai was 0.2% lower. Dow futures were recently at -4.
Crude oil futures rallied 13 cents this morning to $78.99 a barrel. The spot gold price was $2.70 stronger at $1,185.10 an ounce. The Aussie dollar was buying 0.9013 U.S. cents.
This morning quickly turned into an exercise in damage limitation for this trader, thanks to a bungled buy in DDT. Got in far too late in the initial run (schoolboy error) and had to average down at 3.4 to escape with a smaller loss. Out now and cursing myself for uncharacteristically reckless decision-making.
