Australian stocks appear destined for a second straight losing week despite modest gains on Asian markets this morning.
At lunchtime the ASX 200 was up 8 points or nearly 0.2% at 4252 after hitting a morning high of 4264 in the first hour. Financials, industrials and property trusts accounted for most of the morning's gains, with resource stocks the biggest drag. The index would need to rally at least 30 points this afternoon to surpass last week's closing level of 4281.
The mood was equally lacklustre on Asian markets, where Japan's Nikkei gave up early gains to fall 0.1%, Shanghai rallied 0.13% and Hong Kong's Hang Seng recovered 0.46% after falling more than 5% yesterday. Dow futures were recently up 8 points or 0.1%.
Federal Treasurer Wayne Swan this morning lambasted Europe's failure to contain the region's debt crisis. "The global economy is paying a very high price for the failure of the Europeans to reform their economies over a long period of time," he said in remarks quoted on Fairfax. "All my colleagues are dismayed by the events in Europe. We've got to keep that pressure up because the stakes are really high."
Crude oil futures eased 14 cents this morning to US$97.55 a barrel. Spot gold was $4.20 stronger at US$1,764.40 an ounce. The dollar was buying US$1.0134.
Trading volume has been improving all week but there's little urgency this morning. Bring on a new week and a change of market mood. It has been subsistence wages at this trading desk all week and today hasn't changed that. Caught CWN on pullback but the rebound so far is minimal. Fancied FXJ to recover from the John B Fairfax exit but it's anchored to its lows at present.
