Regional markets have rallied for a third session despite softening US futures ahead of a big week for central bank meetings.
At lunchtime the ASX 200 was 34 points or 0.8% stronger at 4244 after earlier hitting its highest level since mid-May. Financials led the rally, rising 1.4% ahead of property trusts +1.2%, health +1.2% and metals & mining +1%.
"Expectations are running high that central bankers will deliver on further policy steps at the Federal Reserve, European Central Bank and Bank of England meetings this week," a strategist at Credit Agricole told MarketWatch.
Asian markets followed the positive leads from the US on Friday, with Shanghai recently turning positive. Japan's Nikkei put on 0.62%, Shanghai edged up 0.04% and Hong Kong's Hang Seng jumped 1.39%.
Dow futures were recently down 26 points or 0.2% as strength in the US dollar exercised mild pressure on risk assets such oil and gold. Crude oil futures retreated 12 cents to US$90.14 a barrel. Spot gold was $2.20 weaker at US$1,620.60 an ounce. The Australian dollar was buying $US1.046.
A terrific start to the week to follow on from Friday's explosive run, but movements in currencies, oil and gold this morning suggest some caution may creep in ahead of those central bank meetings. My strategy for the week was to sell into today's exuberance and then wait for weakness to buy again. Profits taken in GXY and ALL, plus a loss on WTF - may have sold too soon there. Small speculator in ARU.
