A rally in resource stocks helped the ASX overcome weak overnight leads and losses on most regional markets for a second day.
At lunchtime the ASX 200 was two points or less than 0.1% higher at 5277 and trading well above the early low of 5249. A 0.6% rise in the metals & mining sector accounted for much of the recovery. IT +0.9%, energy +0.2% and telecoms +0.2% were also trading higher, while health -0.3% and utilities -0.3% were the biggest drags.
"If some of the froth comes out of the market then I will be adding to positions, but in the short term the markets are vulnerable," Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors, told Bloomberg. "The market has gone up a long way on the back of the liquidity expansion and we now need to see some real improvement in earnings."
As with yesterday's action, most Asian markets were more downbeat. Shanghai fell 1.15% and Hong Kong's Hang Seng 0.56%. Japan's Nikkei shook off early losses to advance 0.34%. Dow futures were recently up 25 points or nearly 0.2%.
Spot gold fell $3.90 this morning to US$1,330.50 an ounce. Crude oil futures eased two cents to US$102.38 a barrel. The dollar was buying 93.57 US cents.
Anyone who complains about our market under-performing the rest of the world should be enjoying this week. Been a rare show of independence. Can only guess it's international money looking for a safer home until the latest US debt squabble blows over. Feels like I should be making more of it. Squeezed a couple of pips out of ATU for a second straight day. Took DOW at the low because it has been swinging intraday lately. Took OSL at 12 because it presents obvious horizontal support.
