Thanks Shantaram. Don't sweat the date problem - I'm a past master at it and they still let me post...
Half-time round-up:
Australian shares notched a fresh 14-month high this morning as stimulus measures in China helped fuel a rally in Asian shares and US futures.
At lunchtime the ASX 200 was 23 points or 0.5% firmer at 4504 and on track for its eighth gain in nine sessions. Resource stocks recouped some of yesterday's losses as a rebound in iron ore offset overnight declines in oil and metals. Energy stocks rallied 1.2%, gold 0.9% and materials 0.7% after the price of iron ore jumped $US6.20 or 6% to $US110.40 yesterday as Chinese buyers returned from a week-long holiday.
"Iron ore prices went up quite aggressively so that is helping [iron ore miners] along. Most of these companies would have a decent margin at these levels," Patersons Securites senior dealer Martin Angel told Fairfax.
US futures rallied this morning after the People's Bank of China announced it will use "reverse repurchase agreements" to improve liquidity in the banking system. Dow futures were recently up 28 points or 0.2% as Shanghai rallied 1.04%, the Hang Seng put on 1.08% and Japan's Nikkei lost 0.46%. Read more here.
The International Monetary Fund this morning cut next year's growth forecast for Australia in the light of overseas economic weakness. The outlook for 2013 was reduced to growth of 3% from the fund's April forecast of 3.5%. Read more here.
Business confidence improved last month even as conditions deteriorated, according to NAB's monthly survey. The confidence index recovered from minus three points in August to zero, but conditions slumped from zero to minus three.
Crude oil futures rallied 47 cents this morning to US$90.12 a barrel. Spot gold was $1.20 stronger at US$1,778.10 an ounce. The dollar was buying $US1.0232.
I have no idea what a "reverse repurchase agreement" is but the market likes it and that's all that matters. Risk is back on. Added some RDR when it held yesterday's low. Watching a few more.
