Australian stocks struggled to hold early gains this morning despite a regional rally as US futures responded positively to after-market earnings.
At lunchtime the ASX 200 was unchanged at 4924 and well below the morning high of 4960. The beaten-up resources sector snapped back from yesterday's multi-year lows, led by gold +2.6%, metals & mining +2.2% and energy +1.7%. But any advances were cancelled by falls in financials, down 1%, and several defensive sectors.
"There is a bit of relief in the market," RBS Morgans private client adviser Bill Bishop told Fairfax. "People are slowly working out that the resources boom is not what it was and they are adjusting prices accordingly. I can't tell you whether this is a dead cat bounce or the real thing, but nevertheless the market is up and we like that."
US futures rallied following Q1 earnings reports this morning from Microsoft, Google and IBM. Dow futures were recently up 66 points or 0.45%.
The Shanghai Composite put on 1.29% after an index of leading economic indicators came in virtually unchanged. The Conference Board's reading for March was 258.3 versus a revised February reading of 258.4. Hong Kong's Hang Seng advanced 0.84% and Japan's Nikkei 0.61%.
Crude oil futures retreated 19 cents this morning to US$88.12 a barrel. Spot gold firmed $8.70 to US$1,396.10 an ounce. The dollar was buying $US1.0327.
Tough market. Dow futures up 66 points and we're barely holding positive? Disappointing. Wall Street seems to be taking a "glass half full" view of this morning's after-market earnings. Asia also looks strong after the Chinese leading index defied the recent trend towards data disappointments. Slow session at this trading desk - used the bounce in BLY to clear the last of yesterday's position and squeezed a pip out of NEA. Lazy end to a busy week.
