An unexpected rise in exports helped the share market bounce off a four-month low and reach lunchtime little changed ahead of this afternoon's Reserve Bank rate decision.
At 1pm the ASX 200 was two points or less than 0.1% ahead at 4890 after hitting its lowest point since late January in early trade. Resource stocks provided much of the momentum as high-yielding former market darlings such as telecoms, utilities and consumer stocks remained under pressure. The gold sector rallied 3%, metals & mining 1%, industrials 0.2% and financials 0.1%.
The market extended gains following the 11.30am EST release of trade figures that showed exports held up well over the first three months of the year despite the strong dollar. The trade deficit tightened to $8.051 billion, according to the Australian Bureau of Statistics.
"That's a bit of a surprise given the other weak economic data we saw in the quarter," CMC Markets chief market strategist Michael McCarthy told Fairfax.
US futures were stuck in the red as a choppy morning saw Asian markets dip in and out of positive territory. Dow futures were recently off 16 points or 0.1%. Shanghai was down 0.48%, Hong Kong's Hang Seng flat and Japan's Nikkei ahead 0.57%.
Crude oil futures slipped 23 cents this morning to US$93.06 a barrel. Spot gold was 90 cents stronger at US$1,411.50 an ounce. The dollar was buying 97.14 US cents.
Good to see the market bounce off the low - question is, will it hold the gains or give 'em back, like yesterday? Much will depend on the RBA, with a rate cut perhaps a better chance this arvo than most economists believe. Well done to those who made good on BBG this morning. I stayed well clear - done so much dough on that share over the years that they could supply me and everyone I know with surf gear for the rest of our days and I'd still be down on the deal. Opportunities elsewhere were scarce this morning. I took TWE and PBG as subsistence trades, but they've yet to buy lunch.
