Resource stocks helped the share market claw back midweek losses as the benchmark index headed towards its first weekly decline in a month.
At 1pm EST the ASX 200 was 24 points or 0.4% ahead for the session at 5500, but 62 points in the red for the week. The metals & mining sector spearheaded today's rally with an advance of 2.1%, followed by energy +1.7% and gold +1.7%. Rate-sensitive sectors remained under pressure after the RBA cut the cash rate on Tuesday, with utilities off 0.8%, telecoms 0.7% and consumer staples 0.4%.
"The most important development overnight is the high expectations for global monetary and fiscal easing are steadily being met," IG analyst Angus Nicholson told Fairfax. "Japan has announced both fiscal and monetary easing, the UK has announced monetary easing and Chancellor Phillip Hammond has indicated that fiscal easing is likely to be announced in his 'Autumn Statement'. With China likely to keep the fiscal taps operating at high levels throughout the second half of this year as well, and the possibility of fiscal spending in the EU to buttress some of the Brexit fallout, the bounce we have seen in commodities does make more sense. The Bloomberg Commodities Index was up 0.4 per cent, and the Aussie dollar up 0.5 per cent."
China's Shanghai Composite shed 0.09%, Hong Kong's Hang Seng added 1.34% and Japan's Nikkei improved 0.28%. Dow futures were recently ahead by 32 points or 0.18%.
Crude oil futures gave back 19 cents or 0.45% this morning to US$41.74 a barrel. Gold futures were 50 cents or 0.04% weaker at US$1,366.90 an ounce. The dollar was buying 76.53 US cents.
This market is killing me softly. It's far too orderly. As day traders we need Wagner, Carl Orff, Motorhead, Metallica; instead we're getting Kenny G. Where's the panic, the greed, the stampedes? Had a good first six months of the year, but all the volatility seems to have dried up since we entered a new financial year. Subsistence rations since then. Change the record please. Trading: barely. Eased out of OSL from yesterday for brokerage - another one on Mogadon. Intraday dabble in ADO.
