Australian shares appear destined to end lower for the week despite modest gains this morning as a regional index headed for its longest weekly winning streak in 24 years.
At lunchtime the ASX 200 was ahead 13 points or 0.3% at 4269 but well off the morning high of 4290 and some distance below last Friday's close at 4306. In contrast, the MSCI Asia Pacific Index rallied 0.3% this morning and was on track for its 11th straight winning week, the best run since the index was created in 1988.
The cautious tone on the domestic market this morning was underlined by defensive sectors outperforming cyclical stocks. The biggest gains were in telecoms +0.8%, health +0.7% and gold +0.7%.
Asian markets and US futures were more bullish. Japan's Nikkei rallied 0.51%, Shanghai 0.57% and Hong Kong's Hang Seng 0.98%. Dow futures were recently up 14 points or 0.1%.
"Markets shrugged off generally downbeat economic data from the US and Europe, apparently preferring to focus on the continued decline in US claims for unemployment compensation and successful government bond auctions in France and Spain," strategists at Barclays Capital told MarketWatch.
Crude oil futures retreated 11 cents this morning to US$108.89 a barrel. Spot gold was $3.70 stronger at US$1,721.50 an ounce. The dollar was buying US$1.08.
The Friday fade has been pretty reliable this year and this morning was very much to script. Must be profitable for the shorters. Been a mediocre morning at this trading desk. Been too greedy and slow to take profits. Should have taken a profit in PEK at today's open from late yesterday. Slap on the wrist for letting a winning trade turn negative. Managed the same feat with AGS. Fared better with JAL and SXY. Also holding GID on pullback.
