The ASX 200 this morning cracked 5200 for the first time in nearly five years before paring gains as economic data disappointed.
At lunchtime the benchmark index was ahead by 49 points or 1% at 5179 after earlier hitting 5201, its highest point since July 2008. Resource stocks led the charge, bolstered by big gains on metals markets on Friday. The metals & mining sector jumped 3%, materials 2.7%, energy 1.9% and gold 1.7%.
The consumer discretionary sector advanced 0.6% despite news that retail sales slipped a seasonally-adjusted 0.4% in March. Economists had anticipated a modest 0.1% increase. April jobs ads also disappointed, dropping 1.3%. A 0.3% rise in inflation during April left the annual rate at 2.1%, well within the Reserve Banks 2-3% target band. Read more here.
Asian markets traded mixed. Shanghai rallied 1.07%, Hong Kong's Hang Seng 1.14% and Japan's Nikkei retreated 0.76%. Dow futures were recently up 14 points or 0.1%.
Crude oil futures surged 90 cents this morning to US$96.51 a barrel. Spot gold was $6.50 stronger at US$1,477 an ounce. Copper for July delivery eased around two cents or 0.6% to US$3.30 a pound. The dollar was buying $US1.029.
Another milestone for the index in the long march back from the depths of the GFC. Pity our return journey is taking so much longer than that of Wall Street, the DAX or even the FTSE. Been a generally bullish morning on world markets, with oil on the charge, gold advancing and copper giving back just a little. For me it was a morning of fleeting opportunities and plenty of air shots. Connected just once, with GDY. Patience, son, patience...
