Thanks Tweets. Half-time round-up:
A swift 100-point rally on local share indexes faded to a more modest 50-point gain by lunchtime as caution continued to weigh on trade.
At 1 pm the ASX 200 was up 1.15% at 4314, led by gains in metals & mining +2.8%, materials +2.6% and gold +2.1%. The only sectors to trade negative were the traditional defensives, health and utilities.
The local economy gathered pace in March, a survey showed this morning. The WBC-MI leading index of economic activity climbed 1% to an annualised growth rate of 8.7% in March - the highest annualised growth rate since 1997. However, Westpac chief economist Bill Evans warned that deteriorating conditions since March are likely to have a significant impact on the outlook.
"Given that these data are to March, the deterioration in global economic conditions in April and May can be expected to make a considerable correction to the leading index over the next few months," Mr Evans said in a statement quoted on Fairfax websites. "There is little chance of a change in [interest] rates with the global tensions in financial markets signalling that the pause which the [RBA] indicated following the last rate hike in May is almost certain to occur."
Construction work continued to grow last quarter, according to data released this morning, but at a slower pace than expected. Total construction work rose 1.9% in the March quarter, seasonally adjusted - below the median market forecast of a 4% rise.
In company news, shares in Foster's surged more than 8% after the company announced it will demerge its wine and beer divisions. Analysts said the demerger would expose shareholders to the prospect of take-over offers for the lucrative beer business.
Japan's Nikkei was up 0.27% and Hong Kong's Hang Seng 0.7% but Shanghai dipped into the red, recently down 0.27% . Dow futures were recently at +23.
A recovery in the U.S. dollar further eroded crude oil prices. Crude futures were recently down another 44 cents this morning to $69.52 a barrel. The spot gold price was $1 higher at $1,202.60 an ounce. The Australian dollar was down 0.8% against the greenback, buying 0.8223 U.S. cents.
There was a dreary predictability about this morning's action - big open, a quick surge as some burnt shorts cover and then a steady fade. For now at least, rallies are still selling opportunities. I sat and watched until well after 11 am before a few bounce-scalp opportunities presented themselves - PPX, TCL and more recently, MRE.
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Thanks Tweets. Half-time round-up:A swift 100-point rally on...
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