Thanks Endless. Half-time round-up:Australian shares marked a...

Thanks Endless.

Half-time round-up:

Australian shares marked a 10-week high this morning en route to a possible 10th straight positive close as regional markets joined a global rally on improving economic signals.

At lunchtime the ASX 200 was 44 points or 0.9% ahead at 5106 as a rebound in the big banks helped the index to a mid-morning high of 5116. The rally was paced by gains in financials +1.2%, metals & mining +1.1% and industrials +0.6%. Gold -2.4% and utilities -0.3% were the only sectors to turn lower.

"The bulls have regained control," Matthew Sherwood, head of investment markets research at Perpetual Investments, told Bloomberg. "Fears eased about the global economy and reassuring comments from central banks confirmed that the money glut will continue."

The market held its gains as Treasurer Chris Bowen unveiled details of a mini budget that is expected to precede an election announcement in the days ahead. Mr Bowen announced a $33 billion shortfall in government revenues but said the budget will return to surplus in 2016/17. Read more here.

China's benchmark share index, the Shanghai Composite, rallied for a fourth day, recently up 0.37%. Hong Kong's Hang Seng gained 0.43% and Japan's Nikkei was up 1.39%. Dow futures were recently ahead 14 points or 0.1%.

"Essentially, the market is waiting for a global economic recovery in the latter half of this year," Tohru Yamamoto, chief fixed income strategist at Daiwa Securities in Japan, told Reuters. "We had decent Chinese manufacturing data yesterday. Periphery European countries are also improving recently. And central banks have confirmed that easy policy will be in place."

The bull run in oil continued, with the September contract extending two days of gains with a rise of 80 cents this morning to US$108.61 a barrel. Spot gold was $1.20 weaker at US$1,307.30 an ounce. The dollar was buying 89.11 US cents.


Happy days. With Europe on the mend and the US finally gaining traction, the global economic outlook looks the brightest in years. Can't remember the last time our market strung together 10 straight advances, even if the gains on most days have been modest. The spec sector is on fire, with some of the biggest dogs in the pound getting walked lately. Breakout and momentum traders must be filling their boots. Pullback trading is less lucrative in these conditions, with trades scarcer as the market climbs. Still, it generally pays to stick to your strengths and I had subsistence wins this morning in RSG and DJS.