Shares kicked higher for a second day before soft inflation data dented the dollar and BHP pared a 19-month high on half-year earnings.
At 1pm EST the ASX 200 was 25 points or 0.45% ahead at 5675 after earlier running as high as 5690, BHP pushed the metals & mining sector up 1.8% to a 28-month peak after reporting record iron ore output last quarter on increased Chinese demand and improved pricing. The materials sector gained 1.5%, financials 0.8% and industrials 0.4%.
Traditional defensive sectors took a hit following a 'risk-on' session in the US overnight, where the S&P 500 touched record levels. Gold stocks slumped 1.7%, health 0.5% and utilities 0.4%.
"After a bumpy start in the first few days where Trump focused on protectionist measures, the markets reacted positively overnight with US equity benchmarks boosted to fresh all-time highs," James Woods, global investment strategist at Rivkin Securities, told Reuters.
The early rally tapered off as consumer inflation came in weaker than expected last quarter. Prices rose 0.5% over the three months to the end of the year, versus expectations for an increase of 0.7%. Annual growth was 1.5%, versus an anticipated 1.6%. The dollar fell roughly half a cent before trimming its fall, lately buying 75.37 US cents.
China's Shanghai Composite dipped 0.04%, Hong Kong's Hang Seng put on 0.33% and Japan's Nikkei added 1.33%. Dow futures were recently stronger by eight points or 0.04%.
Crude oil futures retreated 20 cents or 0.38% this morning to US$52.98 a barrel. Gold futures lost another $2.10 or 0.17% at US$1,211.50 an ounce.
Wall Street remains in buoyant mood, willing to overlook any negatives in the Trump administration's actions so long as he throws them a bone now and then. Looks like the post-election rally has more to give, which means the ASX has ground to make up. Perhaps not today, with a public holiday here tomorrow and two nights US trade to come before we reopen. Friday could see a gap higher if Wall Street plays nice and Trump keeps his head down. Trading: part of the unhappy throng who regret not grabbing MUS first thing. Got a wage out of MLS, but that's it so far.
