Thanks Oscar and morning crew.
Half-time round-up:
Shares pared a fifth straight week of losses as part of a global rebound after downbeat US economic data overnight dulled the likelihood that US rates will rise this month.
At 1pm EST the ASX 200 was 55 points or 1.1% ahead for the session at 5295, more than forty points shy of where the benchmark index began the week. A broad rally was led by the consumer discretionary sector +2.1%, energy +1.9% and utilities +1.7%. Gold -0.8% was the only sector to miss the upswing.
The odds on a rate rise in the US this month slumped to 18% overnight following weak factory and retail sales figures. The S&P 500 rallied 1.01% in response.
“With nothing in the economic numbers to say US rates should be moving up, and growing signs of losing momentum, expectations have largely diminished toward the Fed doing anything in September,” Cameron Bagrie, chief economist at ANZ Bank New Zealand, told
Bloomberg. “The market is drifting back toward the view they might do nothing for quite a while.”
This morning's rally largely erased Monday's precipitous plunge, the local market's worst session since the Brexit shock in June.
"The first hour of trading has been the strongest we've seen in two weeks and would be a welcome sight for many as it has been a difficult couple of weeks," Gary Huxtable, client adviser and strategist at Atlantic Pacific Securities, told
Fairfax. "Those who have been sitting on the sidelines would have gained confidence from the last few sessions."
Japan's Nikkei advanced 0.39%. China's Shanghai Composite and Hong Kong's Hang Seng were closed for public holidays. Dow futures were recently down 21 points or 0.12%.
Crude oil futures slid 24 cents or 0.55% this morning to US$43.67 a barrel. Gold futures were 40 cents or 0.03% weaker at US$1,317.80 an ounce. The dollar was buying 75.16 US cents.
Strong rally this morning as the trading houses snap up the same shares they were selling a few days ago during the rate-hike panic, one of the most fatuous excuses for a retrace we've seen in recent times. Rational market? Never was, never will be. Lots of room for the XJO to move higher in the days/weeks ahead. I should have added a few short-terms but didn't. Not a sniff of a trade this morning.
