Local market buoyed by optimism
A rising tide has lifted all the boats on the share market today. Buoyed by optimism about the US earnings outlook and an overnight bounce in commodity prices, screens are a sea of green. An opening above the technically significant 4410 level on the ASX200 Index has also spurred buying.
Financial and materials stocks are performing well, with a particular bias towards medium sized companies. Initec Pivot is a stand out, lifting substantially after a broker upgrade. Traders are suggesting that the bounce in both sectors is due at least in part to short covering, as trading interests scramble to cover negative positions entered on weakness in Shanghai markets earlier in the week, ahead of important Chinese economic data to be released tomorrow.
Defensive healthcare and consumer staple stocks are less positive, possibly reflecting their recent strong rises as the broader market weakened. Similarly, energy stocks are generally up but Santos is underperforming, after its earlier strength around a possible deal on its Gladstone project.