Australian stocks surged to a six-week high this morning as regional markets responded positively to G20 backing for plans to contain Europe's debt crisis.
At lunchtime the ASX 200 was ahead 73 points or 1.75% at 4279 and on track for its strongest close since early September. Materials +2.3% and financials +2% led a broad rally that carried all sectors higher.
"An important pre-condition for resolving the European credit crisis is unity of vision and commitment to find a solution," Angus Gluskie of White Funds Management in Sydney told Bloomberg. "The comments over the weekend show some elements of both. A credible and well-executed solution is the next element, and we are yet to see this."
US futures ticked up as Asian markets advanced this morning. Japan's Nikkei put on 1.47%, Shanghai 0.79% and Hong Kong's Hang Seng 1.96%. Dow futures were recently up 41 points or 0.35%.
The dollar rose nearly a cent to a one-month high. The Aussie was lately buying $US1.0308 after earlier trading as high as $US1.035.
Crude oil futures were unchanged this morning at US$87.29 a barrel. Spot gold was 20 cents stronger at US$1,680 an ounce.
Plenty of expectation getting baked into this rally - let's hope Europe delivers this weekend. Be very interesting to see if there is enough momentum to break the August/September highs. Some sort of pullback after an initial test is likely. No trades for me as yet today - dealing with jet lag and I'm still developing a feel for the changed trading conditions.
