Yield stocks led the ASX's first rally in three sessions as the Reserve Bank maintained its "accommodative" stance on rates.
At lunchtime the ASX 200 was trading 19 points or 0.35% ahead at 5558, with telecoms +1.2%, gold +1%, financials +1% and utilities +1% leading the way. Consumer discretionary -0.6%, energy -0.4% and metals & mining -0.3% brought up the rear.
The minutes from this month's Reserve Bank confirmed that the central bank maintained an easing bias: "The board's assessment was that the stance of monetary policy should be accommodative. Output growth had continued at a below-trend pace over the past year and would remain a little below trend in the period ahead before picking up to around trend in the latter part of 2016."
The dollar showed little reaction to the minutes, lately unchanged at 77.65 US cents despite the board noting that further depreciation in the currency was "both likely and necessary".
Asian markets took their cues from overnight declines in the US and Europe. China's Shanghai Composite slid 1.98%, Hong Kong's Hang Seng 0.44% and Japan's Nikkei 0.63%. Dow futures were recently off 27 points or 0.15%.
Crude oil futures bounced 48 cents this morning to US$60 a barrel. Spot gold was 80 cents firmer at US$1,186.60 an ounce.
Looks like the XJO is paring gains in response to weakness in Asia and US equity futures. The index briefly touched its highest level in seven sessions but conditions are not really conducive to a run just yet. Trading: baffling problem with price alerts this morning cost me a few entries. Got a few pips out of TWE but did not develop into anything more than a subsistence trade. Holding DCC and MIN - both look to have recovery potential this arvo.
