Australian shares rallied alongside Asian markets this morning as US futures pared losses following the shock resignation of Apple CEO Steve Jobs.
At lunchtime the ASX 200 was ahead 54 points or 1.3% at 4221 despite several high-profile profit disappointments. Property trusts +3.1% and energy shares +2.4% were the pick of the sectors. Gold shares fell 1.2% following the heaviest single-day fall in the price of gold in three years and consumer staples lost 0.6% after Woolworths issued a downbeat profit outlook.
"US durable goods came in well above expectations, up 4% rather than the 2% expected," a strategist at IG Markets told MarketWatch. "This rather bullish figure was mainly down to a large rise in car and aircraft orders, and has helped give some backing to those who believe the West will escape a double-dip recession."
US futures initially fell this morning following news that Apple's highly-regarded CEO Steve Jobs is standing aside in favour of his long-standing lieutenant Tim Cook. Jobs will take over the chairman's role at the company. Dow futures were lately off 14 points or 0.1% but well off the morning's low.
Asian markets played catch-up following three nights of gains in the US. Japan's Nikkei rallied 1.43%, Shanghai 1.49% and Hong Kong's Hang Seng 1.55%.
Crude oil futures were unchanged this morning at US$85.13 a barrel. Spot gold was another $9.20 softer at US$1,754.10 an ounce. The dollar was buying US$1.0454.
Jobs schmobs. Good to see the ASX ignore the distraction and finally play catch-up with the US. Was all about TSE for me this morning - terrific trading range which I could have used to much better effect. Also had a barely-worth-it scalp in ZGL.
