Regional markets and US futures rallied this morning while the Australian share market struggled to hold onto early gains.
At lunchtime the ASX 200 was ahead 17 points or 0.4% at 4479 but well off the morning high of 4503 set in the opening minutes of trade. Financials, health stocks and utilities were the sector picks during a mixed morning in which industrials, oilers, consumer staples and property trusts lost ground.
"Overall, it has been a reasonably positive day, which have been few and far between in recent times," Cameron Securities client adviser Adrian Leppinus told Fairfax. "The banks are finding a few friends today. The banks at the moment have good yields and dividends are expected to at least remain stable."
US futures picked up as key Asian markets rallied. Dow futures were recently 16 points or 0.1% stronger after Japan's Nikkei put on 1.1% in morning trade and Hong Kong's Hang Seng advanced 0.36%. Shanghai was off 0.1% but recovering from heavier initial losses.
Crude oil futures rallied 16 cents this morning to US $90.97 a barrel. Spot gold was $1.50 stronger at US $1,499.60 an ounce. The dollar was buying US $1.0473.
Another day, another morning fade. These conditions are made for short-sellers, tricky as all get-go for longs. I'm trying to limit my exposure by waiting longer than usual before buying sell-downs, but the downside is that I'm getting into far fewer trades. Was in and out of NAV near the lows this morning and thought UGL was worth a look when it extended well outside its usual trading range - no joy there yet. Lost on BLY yesterday - trying again today now it's on support.
