The share market edged to a new 12-week high ahead of this afternoon's rate decision as Asian markets continued to pursue the US and Europe higher.
At lunchtime the ASX 200 was up 19 points or 0.45% at 4292 as cyclical sectors outperformed defensive stocks. Resource stocks once again led the gains, metals & mining rising 1.1%, energy 1.1% and gold 1.2%. Defensive stocks accounted for most of the sector declines: health stocks fell 1%, utilities 0.6%, telecoms 0.3% and consumer staples 0.2%.
"International markets are becoming encouraged by signs that Mario Draghi's leadership role in Europe may pay dividends," CMC Markets chief analyst Ric Spooner told Fairfax. But "investors may need more detail on the European arrangements or good news on major economies to push prices higher."
Japan's Nikkei fronted a morning of mild gains in Asia, rising 0.6%. Shanghai recently turned negative, easing 0.02%, and Hong Kong's Hang Seng put on 0.37%. Dow futures were recently up eight points or less than 0.1%.
The dollar hovered near a four-month high as currency traders awaited a 2.30pm EST cash rate announcement by the Reserve Bank. The Aussie was buying $US1.0591.
July construction data offered no respite in the downtrend that has seen activity contract for 26 months. The AiG-HIA performance of construction index dropped 2.2 points to 32.6.
Spot gold retreated $3.50 this morning to US$1,611.10 an ounce. Crude oil futures were unchanged at US$92.09 a barrel.
When market sentiment turns, the result is a wonder to behold. This rally just keeps giving. With a break from the market looming, I'm trying to stick to pure day trades at present and pinched half a day's wage out of FAR. Also a speculator in SPN - overdone? Took profits on NWH from yesterday. Also watching the likes of SIR, NWE, NXS and MAT for reversal entries.
