Stocks struck a six-week high this morning, spurred by take-over action, firmer commodity prices and an improving outlook in the U.S.
At lunchtime the ASX 200 was ahead 44 points or 0.93% at 4811 and on course for a seventh straight positive close. The gains were spearheaded by energy stocks, up 3.9%, metals & mining +2.2% and materials +2.1%. Volumes were below average, with public holidays in Victoria, Tasmania and South Australia.
A take-over offer for Arrow Energy sparked a run on other potential acquisition targets. Arrow rallied more than 45% this morning after a joint bid from Shell and PetroChina worth at least $3.3 billion.
BHP rallied 2.2% after announcing a switch to shorter-term contracts for its coking coal to take advantage of a rising spot price. The spot price of coking coal was recently about $US220 a tonne, well above the last year's contract price of $US130.
Asian markets followed Wall Street north. Japan's Nikkei rallied 1.76%, Shanghai 0.4% and Hong Kong's Hang Seng 1.5%. Dow futures were recently at +2.
Crude oil futures continued to climb, adding 38 cents this morning at $81.88 a barrel. The spot gold price rose 30 cents to $1,134.70 an ounce.
Well, the market is ahead but off its morning high, as expected. I don't much enjoy big gap openings unless I'm holding and looking to off-load. No such luck today. I managed modest scalps on AOE and KTE but it has been thin fare aside from that.
