Shares edged up for a fifth day in six as rising US futures offset mixed Asian markets ahead of tonight's European Central Bank policy statement.
The ASX 200 hovered near an 11-week high for a second day, rising 10 points or 0.1% to 4273 as strength in energy, materials and financial stocks trumped soft defensive sectors and industrials.
Asian markets were mixed but little changed as investors digested the US Federal Reserve's "wait and see" approach to further quantitative easing overnight. Japan's Nikkei put on 0.32%, but Shanghai dropped 0.06% and Hong Kong's Hang Seng lost 0.52%. Dow futures were recently up 28 points or 0.2%.
"Asian markets are hoping but not completely believing that the ECB will do more," a market strategist at Sumitomo Mitsui Trust Bank in Japan told Bloomberg. "Investors didn’t expect the Fed to make any moves, so its pledge to support the economy if necessary gave some relief."
The Australian market showed little reaction to news this morning of an up-tick in retail sales and an unexpected trade surplus in June. Retail sales increased by a better-than-predicted 1%, while a 2% drop in imports helped produce a surplus of $9m. Read more here.
Crude oil futures edged up five cents this morning to US$88.88 a barrel. Spot gold firmed $2.30 to US$1,601.80 an ounce. The dollar was buying $US1.0487.
A predictably subdued session, with no real impetus to move the market in either direction. Fireworks one way or the other tomorrow? SIR and IAU were the obvious trades this morning. So I wonder why didn't I take them? Instead I opted for a "gone-nowhere" punt on one of my favorite intraday movers, FXJ. Needs the kiss of life from Gina. Yikes. Been watching NMG this week for capitulation and finally took the plunge this morning. Jury is still out.
