The share market overcame a weak open to push higher this morning after most Asian markets took soft Chinese weekend economic data in their stride.
At lunchtime the ASX 200 was 21 points or 0.4% ahead at 5144 as gains in utilities +1.3%, gold miners +1.3% and consumer discretionary stocks +0.9% helped offset falls in metals & mining -0.5% after Chinese industrial activity and retail sales for the first two months of the year under-performed expectations.
"While retail sales growth was weaker than expected, the impact of the [lunar] New Year means it's prudent not to assume it's a definite indication of a trend towards lower growth," Ric Spooner of CMC Markets told Fairfax. "Although it is likely that China will maintain overall growth rates of at least 7-7.5%, more measured growth like this would see some downgrade in the more optimistic forecasts for overall world growth."
The ASX 200 advanced to a new four-and-a-half-year high after the Shanghai Composite fell less than feared this morning. China's benchmark index was lately down 0.87%. Hong Kong's Hang Seng rose 0.34% and Japan's Nikkei put on 0.93%. Dow Emini futures were recently flat at 14,373.
Crude oil futures retreated 15 cents this morning to US$91.72 a barrel. Spot gold was $2.80 stronger at US$1,581 an ounce. The dollar was buying $US1.0227.
Looks like our market has decided the Shanghai Composite's reaction to weekend economic figures isn't scary enough to slow this long rally, so up we go. Also good to see some of the regulars making hay this morning. Cgull, nice work on KEY. Been a scruffy sort of morning at this trading desk. Got COI at the low but a measly part-fill provided little benefit. Took a very small speculator in PYM after three days of freefall. Also thought FML was worth a look at support, likely for a pip at most.
