Shares edged higher for a second day as two of the big banks rose from multi-month lows and US futures applauded early indications that the UK will avoid a destabilising break-up.
At lunchtime the ASX 200 was trading seven points or 0.1% ahead at 5423 as gains in telecoms +0.6%, health 0.5% and financials +0.3% helped offset weakness in utilities -0.6%, metals & mining -0.4% and property trusts -0.2%.
“The market can grind higher into the middle of next year,” Mark Lister, head of private wealth research at Craigs Investment Partners in New Zealand, told Bloomberg. “With central banks still being pretty supportive, with economic growth ticking over and with earnings growth from most regions still looking decent, you can really see there aren’t any better alternatives to equities. We’re staying overweight equities.”
US equity futures improved this morning as the first polling results from the Scottish referendum vote pointed to victory for the 'No' camp. Dow futures were recently up 68 points or 0.4%. Asian markets were mixed. China's Shanghai Composite fell 0.13%, Hong Kong's Hang Seng added 0.16% and Japan's Nikkei put on 1.44%.
Crude oil futures slid five cents this morning to US$92.94 a barrel. Spot gold was $3.40 weaker at US$1,222.20 an ounce. The dollar was buying 89.54 US cents.
No Scottish independence. If the 'Yes' camp couldn't convince places like Shetland and the Western Isles, the campaign has no chance.The markets will like that result because it removes an uncertainty and quashes the threat of a wave of independence votes across Europe. I've been struggling for trading ideas for most of this week - not nearly enough movement for my usual approach. Had dabs at ALK, SBM and RXM this morning without great expectations. Be happy to draw a veil over this week and start again on Monday.
