Local shares shook off a weak lead from Wall Street to build a new four-month high on gains in gold shares and the big banks.
At lunchtime the ASX 200 was up 22 points or 0.5% at 4648. The gold sector fronted the morning's risers, adding 1.9%, ahead of IT +1.8% and financials +0.7%.
"It's not from a lead from overseas," RBS Morgans director of equities Bill Chatterton told Fairfax. "I think we're just starting to get a bit more confidence, generally speaking, creeping into the market."
The morning's local economic reports were a mixed bag: consumer confidence down, housing starts below expectations and vehicle sales up. The WBC/MI consumer sentiment survey dipped 5% this month, erasing most of August's rise.
"It comes as a mild surprise," Westpac chief economist Bill Evans told Fairfax. "While we were mindful of the high starting point for the index, we expected that the news over the month had been sufficiently positive to ensure a modest further increase."
Housing starts increased just 0.8% last quarter, against expectations for an increase of 5%. New motor vehicle sales increased 0.3% last month, seasonally adjusted.
Asian markets were mixed. Japan's Nikkei stacked on 1.84% after the yen tumbled on reports of government intervention. Meanwhile, Shanghai was recently off 0.36% and Hong Kong's Hang Seng up 0.12%. Dow futures were recently at +4.
The spot gold price tracked sideways this morning after last night's breakout, trading recently 30 cents higher at $1,268.30 an ounce. Crude oil futures swooned another 63 cents this morning to $76.12 a barrel. The Aussie dollar was buying 93.73 U.S. cents.
A tepid morning's trading here. Nailed the modest bounce in FGL. Like Kevi, I fancied PDN for a bounce but there's no buying strength yet. RHC looks set up for a reversal but can't hold above 14.70. Still holding and waiting.
