Thanks Endless. Half-time round-up:The Australian share market...

Thanks Endless.

Half-time round-up:

The Australian share market used the Dow's record high as a springboard to a new four-and-a-half year peak this morning as GDP data met expectations and Asian markets advanced.

At lunchtime the ASX 200 was 48 points or 1% stronger at 5124 with all sectors in positive territory except the defensive consumer staples -0.3% and gold -0.9%. The big banks once again spearheaded the advance, driving the financials sector up 1.5%. Energy stocks added 1.3% and materials 0.9%.

The market extended its gains after the 11.30am EST release of fourth-quarter GDP figures, despite some concern over consumption. The headline figures matched economists' projections, with quarterly growth of 0.6% contributing to an annual rate of 3.1%.

"Household consumption was particularly weak, investment slowed down a bit but we did see a strong contribution to the economy from net exports, as coal and iron ore exports ramped up," HSBC chief economist Paul Bloxham told Fairfax. "‘We think the soft patch these figures represent is behind us and that growth will pick up in the first half of this year, so we think the RBA's easing phase is done."

Asian markets followed European and US markets higher. Shanghai gained 0.24%, Hong Kong's Hang Seng 0.72% and Japan's Nikkei 1.09%. Dow futures were recently up 13 points or 0.1%.

Crude oil futures put on another 20 cents this morning to US$90.97 a barrel. Spot gold was $3.80 firmer at US$1,578.30 an ounce. The dollar was buying $US1.028.


Ring a ding ding. The XJO at its highest point since September 2008 and SIR at $4. Two pretty remarkable journeys. Let's hope both have a lot further to travel. Not a bad morning at this trading desk despite the technical problems with CommSec Iress - been a bit like getting into your car and finding someone has messed up all the controls. The gear-stick now starts the windscreen wipers and the horn blares every time you turn on the air conditioning. I was grateful for plunges in AUT and MFG for nice, low-risk entry points for bounce trades. Profits taken and feet now on desk.