The Australian share market pared its worst week in 10 months as bargain-hunters snapped up the big banks this morning.
At lunchtime the ASX 200 was 16 points or 0.3% stronger at 4975 and on track to break a four-session losing run that had pulled the index down more than 160 points at yesterday's close of trade. The XJO touched a six-week low of 4928 this morning before reversing as gains in financials +1%, gold +1.7%, consumer staples +0.7% and utilities +0.4% out-weighed a flat session for the miners and declines in most defensive sectors, industrials and small caps.
"The main risk is that equity markets have come too far too fast and that investor sentiment may have become too optimistic," Barclays Capital said in a research note quoted on Reuters. "However, we expect any correction to be contained given persistent fundamental support for equities: continued policy support, the low risk of a cyclical downturn and attractive valuations relative to fixed income."
Asian markets continued to slide. Shanghai fell 0.29%, Hong Kong's Hang Seng 0.14% and Japan's Nikkei 1.26%. Dow futures were recently ahead by 12 points or less than 0.1%.
Crude oil futures rallied 16 cents this morning to US$92.55 a barrel. Spot gold was 10 cents weaker at US$1,613.50 an ounce. The dollar was buying $US1.0432.
Be nice to see the market break its losing run, even if it's little more than short-covering ahead of the weekend and a bit of dividend hunting in the banks. No news from the EU finance ministers' conference call, so far as I can see. May not be anything to report. As for me, been a nothing session to end the week. The long-awaited pullback in BGS has yet to offer an attractive entry and I had my eye off the ball when KDR presented a fleeting entry opportunity. Instead I have a dismal part-fill in ANQ and a gone-nowhere buy in ALL at support. Shouldn't grumble - as Endless says, these are salad days for the market and I've made more than enough this week to enjoy the weekend.
