A ten-week high in the financial sector after an earnings update from ANZ helped the ASX limp towards a possible fourth gain despite weakness in resource stocks and a lacklustre session in Asia.
At 1pm EST the ASX 200 was four points or 0.1% ahead at 5542 as gains in financials +1.2%, energy +0.5% and IT 0.1% offset declines in gold -1.4%, consumer discretionary -1.2% and metals & mining -0.4%. A 3% rally in ANZ helped counter disappointing updates from IFL, REA and COH.
Overnight, crude oil rebounded more than 2% after OPEC announced a fresh round of talks next month. WTI this morning eased 26 cents or 0.6% to US$42.76 a barrel.
“The main global macro story at the moment is the ongoing resurgence in the commodity complex,” Angus Nicholson, markets analyst at IG, told Bloomberg. “While an [OPEC] deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month’s renewed selloff was causing many struggling OPEC members."
Asian markets marked time. China's Shanghai Composite edged up 0.14%, Hong Kong's Hang Seng edged down 0.32% and Japan's Nikkei gained 0.11%. Dow futures strengthened three points or 0.02%.
Gold futures were 70 cents or 0.05% weaker at US$1,340.60 an ounce. The dollar was buying 76.29 US cents.
Hands up if streaming the Olympics to your trading desk is improving your trading? Me neither. The timing of these finals is a terrible distraction. I got nothing.
