Thanks Endless. Half-time round-up:Asian markets jumped this...

Thanks Endless.

Half-time round-up:

Asian markets jumped this morning and US futures rallied after China cut bank lending requirements to boost the economy.

At lunchtime the ASX 200 was 46 points or 1.1% stronger at 4242 with resource stocks leading the rally on hopes of increased demand from China. The materials and metals & mining sectors both rallied 2%. Energy stocks charged 1.9% as oil pushed towards US$105 a barrel and a 3%+ rally in NCM pushed the gold sector up 2.3%.

"The cut to the reserve requirements for Chinese banks is seen as a real positive by the market," CMC Markets chief market strategist Michael McCarthy told Fairfax. "The loosening of conditions there underpins resources demand and, so, not only have we seen energy stocks perform well but we’re seeing the resources stocks generally doing very well."

Japan's Nikkei surged 1.28%, Shanghai 0.81% and Hong Kong's Hang Seng 1.07%. Dow futures were recently up 67 points or 0.5% ahead of tonight's public holiday in the US and a meeting of European finance chiefs in Brussels to decide on a second bailout for Greece.

Oil surged again this morning after Iran stopped supplies to France and the UK last night in retaliation for a planned European embargo. Crude futures were lately up 82 cents at US$104.86 a barrel.

Gold also benefitted from rising geopolitical tensions. Spot gold increased $13.20 this morning to US$1,737 an ounce. The dollar was buying US$1.0782.


A very bullish morning, with risk assets on the rise and the US dollar falling. However, China's reaction to the bank lending cut is not quite as enthusiastic as our market - perhaps something to keep an eye on. Here, I caught NMG at the low for a pip and a half. Also KRL, which would have been a better trade with a full fill.