A third day of gains is within reach for the Australian share market despite a mixed morning in Asia as the early poll results in the US ran to form.
At lunchtime the ASX 200 was 11 points or 0.3% higher at 4496 with advances in financials +0.4% and materials +0.1% helping to offset declines in industrials -0.6%, consumer staples -0.4% and property trusts -0.3%.
"Investors will be solely focussed on news-wires and the US vote count," Matthew Sherwood, head of investment research at Perpetual in Sydney, told Bloomberg. "Let's just hope for a conclusive vote today."
The rally came despite softening US futures this morning as Americans waited to see who would lead the country for the next four years. Dow futures were recently down 57 points or 0.4%. The early election returns ran as expected, with MarketWatch awarding challenger Mitt Romney Indiana, West Virginia, Kentucky, South Carolina, Georgia, Tennessee and Oklahoma, while President Barack Obama was tipped to retain Maine, Vermont, Massachusetts, Maine, Connecticut, Rhode Island, Maryland, Illinois and Delaware.
Asian markets were mixed. Shanghai lost 0.6%, Hong Kong's Hang Seng 0.19% and Japan's Nikkei added 0.08%.
The morning's only significant domestic economic news showed construction activity declined for a 29th month but at a slightly slower pace last month. The AiG/HIA performance of construction index improved to 35.8 in October from 30.9 the previous month but remained well below the 50-point mark that indicates expansion.
Crude oil futures retreated 33 cents this morning to US$88.06 a barrel. Spot gold was $5.90 softer at US$1,710.30 an ounce. The dollar was buying $US1.0416.
Generally a risk-off morning - oil, gold, Aussie dollar down, US dollar up - but that's just paring overnight gains. Fingers crossed for a clear-cut result in the US elections - trading volumes here have been declining since last Thursday and this market needs some clarity. Opportunities were scarce today, so I'm kicking myself for missing MEO at 23.5, not once but twice. Got there seconds too late for the initial dump and then cancelled a buy order that would have been filled in the second dump. Dumb. Only trade so far is a part-fill in MZI for beer money. On a separate note, got to admire the gall at CAB in letting the shares trade for two and a half hours, falling more than 7% before releasing an announcement not marked as price sensitive admitting they've lost two bus contracts. Contempt for the system.
