Many thanks Endless and especially Madmin for his comments this morning. The moderators have a difficult role here and deserve our gratitude for keeping the forum honest. Thanks and merry Christmas to you all.
Half-time round-up:
The share market recorded a new 18-month high this morning before a dramatic collapse in US futures following news that a proposed budget vote in Washington had been cancelled.
At lunchtime the ASX 200 was one point or less than 0.1% ahead at 4634 after earlier running as high as 4658, a level last seen in early June last year. The financials sector provided much of the momentum, rising 0.5%, ahead of industrials +0.4% and IT +0.5%. Resource stocks and small caps were weak for a second day following overnight losses on commodity markets.
The market surrendered most of its gains as US futures slumped after the Republican party cancelled a proposed vote on its "Plan B" fiscal cliff proposal this morning because it did not have the numbers to pass the bill. The news heightened fears that US politicians will not reach a deal in time to avoid the introduction of spending cuts and tax hikes on January 1 that could pull the US economy back into recession. Dow futures were recently down 174 points or 1.3% but recovering.
"The House did not take up the tax measure today because it did not have sufficient support from our members to pass," Republican House Speaker John Boehner said in a statement quoted on Bloomberg. "Now it is up to the president to work with... [Democrat Senate majority leader Harry] Reid on legislation to avert the fiscal cliff."
Asian markets were mixed. Shanghai eased 0.03%, Hong Kong's Hang Seng dropped 0.68% and Japan's Nikkei added 0.13%.
Crude oil futures retreated 37 cents this morning to US$89.51 a barrel. Spot gold was $5.40 weaker at US$1,644.30 an ounce. The dollar was buying $US1.0454.
Firstly, Merry Christmas to anyone not foolhardy enough to join the diehards here on Monday morning. May Santa be as generous as RXL and DRK were this morning. A great end to the year for many. I enjoyed a little of the spoils in DRK during one of the most profitable sessions in months. ACL, SYD, NST and MML also offered bounce opportunities for a very welcome end to a challenging week. Today was an embarrassment of opportunities - long may it continue.
