Upbeat US equity futures and strength in key commodities helped the ASX push to a fresh three-month high this morning.
At 1pm EST the ASX 200 was 27 points or 0.5% ahead at 5512, within reach of the index's strongest close since late August. Providing the momentum were telecoms+1.6%, utilities +1.3% and metals & mining 1.2%. The financials sector edged up 0.1%.
"The question for traders today will be whether buyers are prepared to act independently of a lead from US markets by pushing the ASX 200 index meaningfully clear of the 5500 level," CMC chief market analyst Ric Spooner told Fairfax. "To be safely clear of this resistance, the index probably needs to end up north of 5530."
With Wall Street closed for Thanksgiving overnight, traders took their cues from rallies in copper and US futures. The metal sometimes known as 'Doctor Copper' for its ability to predict economic growth neared a 17-month high overnight and rose as much as 3.8% on the London Metal Exchange before paring gains. Dow futures were recently ahead 62 points or 0.33% ahead of the resumption of trade tonight.
China's Shanghai Composite put on 0.2%, Hong Kong's Hang Seng 0.49% and Japan's Nikkei 0.67%.
Crude oil futures were flat, up four cents or 0.08% at US$48 a barrel. Gold futures sagged $13.40 or 1.1% to US$1,179 an ounce. The dollar was buying 74.09 US cents.
Not a bad session considering the absence of US leads. XJO seems to be managing a stealth rally. 5600 starting to look possible next week. Trading: NTI provided the fireworks. Did well from the first bounce. Looking to get back in. ST1 proving a fizzer.
