Australian shares are on track for their first advance in four sessions despite a tepid retail sales report and a mixed morning in Asia.
At lunchtime the ASX 200 was ahead 16 points or 0.4% at 4345 with rises in Telstra and the big banks accounting for much of the rally. The materials sector edged 0.2% higher as industrials and a handful of defensive sectors fell. trading volumes were restrained ahead of this afternoon's 2.30pm EST cash rate announcement by the Reserve Bank.
"Traders will be a little bit gun-shy just waiting on, not just the decision, but the commentary," Australian Stock Report head of research Geoff Saffer told Fairfax.
Asian markets were mixed as a strengthening yen held back Japanese shares. The Nikkei eased 0.41% while Hong Kong's Hang Seng put on 0.57%. Shanghai was closed for a public holiday. Dow futures were recently down six points or less than 0.1%.
Retail sales improved in February but not by enough to lift the gloom that has enveloped the sector. Sales grew 0.2% following a 0.3% increase in January.
"This was in line with expectations," Macquarie senior economist Brian Redican told Fairfax. "It looks like another tough start to the year for the retail sector."
Crude oil futures eased 11 cents this morning to US$104.99 a barrel. Spot gold was $2.20 weaker at US$1,677.10 an ounce. The dollar was buying US$1.045.
The market is struggling to hold its gains for a fourth day. Not a great sign in the short term - suggests a pullback is on the cards and a test of last week's index breakout. I won't complain - struggling to find trades at these elevated levels. Just one this morning - a bounce in VAH.
