The S&P/ASX 200 Index climbed just over 1% or 46 points higher to 4249 points today after an early morning surge was sold off during the day.
The local bourse seems back on track to 4350 points, the resistance level it was unable to breach throughout all of October. Risk abounds as the Italians go with hat in hand to the fixed interest markets tonight in the first of several PIIGS auctions this week.
In after hours trading, the Australian SPI futures have risen slightly and are trading at 4258 points.
Asian markets had a slightly better day, Japan’s Nikkei 225 is up 1.6% at 8670 points, the volatile Hang Seng up 1.4% to 18850 points and the Shanghai Composite currently down over 0.5% or 13 points to 2302 points, breaching short term support, remaining in its medium term downtrend channel:
The US markets on Friday were bid up over 1% following the EU Summit outcomes with the S&P500 closing up 1.6% to 1255 points, maintaining a position halfway through the price distribution of the October rally. US 10 year Treasury Notes are stable at 2% yield.
In Europe, the markets were relatively weaker with the UK FTSE up 0.8% to 5529 points, just below resistance at 5600 points:
Meanwhile, the German DAX was up almost 2% to 5986 points, broadly returning to its medium term trend since the September lows, although it too faces stiff overhead resistance.
The Euro (EUR/USD) continues to weaken in its downtrend, albeit decelerating, heading for support just above 1.32 against the USD, it is currently trading at 1.3338
Reflecting this the USD Index has rebounded from a very minor dip, building on short term (3 days) support and heading back to its double top just below 80 points. US dollar strength will be a barometer to equity market weakness going forward.
The AUD also continues to weaken after a strong rebound above parity, currently at 101.86 cents against the USD, whilst WTI crude also hovers around $100 a barrel, falling slightly to $99.16 USD a barrel.
Gold was sold off swiftly today, down over 1% or $20 an ounce during the Asian session, now at $1696 USD an ounce, where it may be forming a head and shoulders bearish reversal pattern:
In Australian dollars, gold also fell over $20 AUD an ounce and is now at $1663 AUD an ounce.
Movers and Shakers
All sectors but consumer staples were in the green today – with healthcare and energy stocks providing most of the gains, alongside the usual suspects.
All the banks were bid up nicely, with ANZ up 0.48%, Commonwealth (CBA) up just over 2%, National Australia Bank (NAB) up 1.4% whilst Westpac (WBC) put on just over 1 percent.
Notably, CBA again tries to break through resistance at $50 per share, reaching $49.98 intraday high. A weekly close above $50 would breach the medium term downtrend since the February high, as seen on the weekly chart below:
Macquarie (MQG) was bid up slightly today and may be putting on a short term breakout move at its depressed levels, whilst healthcare standout Cochlear (COH) was bid up a whopping 4% to finish just over $57 per share.
Its “twin” CSL rose just over 1% whilst Telstra (TLS) climbed over 1.5% on strong volume as it accelerates (a little too much for mind) its medium term trend as investors seek yield (and perhaps a speculative gain on the NBN).
To the resources, with BHP Billiton (BHP) bid up 1.8%, although its “twin” Rio Tinto (RIO) was only up 0.6%. Both remain at depressed levels and within medium term downtrends or channels.
Gold miner Newcrest Mining (NCM) lost over 1% and has fallen below its support levels, reflecting the weakness in the USD and AUD gold price.
Fortescue (FMG) was bid up 0.85% its weekly chart pattern wound up like a spring:
Rounding out the ASX8, Woodside Petroleum (WPL) was bid up smartly, up 1.5% bouncing off low levels.
Defensive stocks Wesfarmers (WES) and Woolworths (WOW) had different days, the former down almost 2%, the latter up 1.3% heading back to pre-August levels after bottoming out below $24 a share recently.