The share market has advanced for the first session in three but gains were limited by soft U.S. futures, a rising U.S. dollar and the prospect of further interest rate rises.
At lunchtime the ASX 200 was ahead 21 points or 0.45% at 4673 as the big banks and BHP recouped some of yesterday's losses.
"They were sold off yesterday, so it's not surprising to see a few bargain hunters jumping in there," CMC Markets market analyst David Taylor told Fairfax. "Also, [the banks'] counterparts in the US had a good session overnight spurred by Citigroup which reported better than expected earnings."
The minutes from the last Reserve Bank monetary policy meeting released this morning confirmed that interest rates are likely to rise soon. The minutes said the decision to leave the cash rate unchanged at this month's meeting was "finely balanced".
U.S. futures remained in the red after poorly-received after-market earnings reports from Apple and IBM this morning, but partly recovered to trade recently at -25 as Asian markets rebounded from yesterday's losses. Japan's Nikkei was up 0.5%, Shanghai 0.13% and Hong Kong's Hang Seng 0.35%.
Oil and gold were crimped by a recovery in the U.S. dollar this morning. The U.S. dollar index was recently up 0.4%. Crude oil futures eased 30 cents to $82.92 a barrel. The spot gold price was $6 weaker at $1,368 an ounce. The Aussie dollar was buying 99.05 U.S. cents.
Not nearly as strong a morning as hoped, with our market still locked firmly in its recent trading range. Plenty of pullbacks to consider in these conditions. I just missed MAH at 51, caught some of the collapse in NHC as it went ex-dividend, scalped MGO from near the low and cashed in a late buy in LNC yesterday. Also added PTM at support, currently under some pressure.
