The S&P/ASX 200 Index closed up after a strong rise in the morning, rising 0.9% or 35 points to 4039. The market is steady in the after hours futures market, whilst Euro and US markets are set to open flat or slightly down.
Asian markets were mixed, Japan’s Nikkei 225 gaining steady at 8615 points, whilst the Hang Seng was down 1.2% at 17905 points and Shanghai Composite down 0.9% to 2391 points.
In other risk assets, the AUD slipped below 99 cents USD to 0.9882, whilst WTI crude lost 1.8% to $82.93 USD a barrel.
Gold finally steadied, although it lost nearly $10 per ounce during the Asian session and is currently at $1642 USD an ounce or $1662 AUD an ounce.
Movers and Shakers
A generally good day across the board on the ASX, with the biggest gains in, IT and consumer sectors, whilst healthcare was down.
The banks were mixed, with Commonwealth (CBA) and ANZ down slightly, whilst NAB and WBC were both up 2% or more. Macquarie (MQG) also booked more gains, up 2.5% closing just below $23 a share.
Cochlear (COH) lost almost 3% and CSL down 0.66%, providing most of the losses in the healthcare sector.
BHP Billiton (BHP) and Rio Tinto (RIO) had modest gains, with the former up 0.5%, whilst the latter climbed almost 1%. Newcrest Mining (NCM) was up 2% whilst Fortescue (FMG) lost almost 8% – and the biggest ASX200 loser of the day.
Nexus (NXS) was the biggest winner on the ASX200 today, up 7.4% on bottom picking whilst other losers included Lynas Corp (LYC) down almost 6% and Coca-Cola Amatil (CCL) taking some froth off after the ACCC said “no problemo” to the Fosters takeover, and lost 3.5%
The Charts
The daily chart below shows that price action has snuck the ASX200 back into its price channel and above resistance at 4000 points, the terminal support level throughout the sideways price movement in late August and September. Short term momentum has not broken through its resistance level, reflecting internal resistance within this rally. Note in the first chart in this post a broad sell off coming into the close.
Although there appears to be daylight above, there is significant resistance at the 4300 point level, the intersection of the medium term downtrend since April and the overhead resistance of the price channel.