So what moved the markets today? Perhaps a speech by the Bank of China Governor that it is ready to step in and help Europe (via the EFSF)?
Alongside the realisation that the Bank of Japan will do whatever it can to restart the flagging Japanese economy, Asian markets jumped at the news, including the S&P/ASX 200 Index which eventually finished up 10 points or 0.25% to 4253. The local market remains in a very tight trading range, and just refuses to break free and go over 4300 points to follow its outperforming US (and European) and possibly Asian brethren:
Other Asian markets rallied much harder, particularly Japan’s Nikkei 225 up 2.6% to 9287, breaking out above resistance at 9000 points and completing a bullish reversal inverse head and shoulders pattern – the next target at 10000 points:
The volatile Hang Seng followed up nearly 2% to 21323 with the Shanghai Composite currently up nearly 1% to 2365 points, breaking out of its long term downtrend channel, with a target above 2500 points but still in a dominant bear market trend:
The AUD has come back above 1.07 against the USD, now at 1.075, as risk switches are turned “on”, whilst WTI crude has gained almost 1% or $1 to be at $101.61USD per barrel. Gold is slowly catching up, only by a few dollars at $1726USD an ounce, whilst in AUD terms the shiny metal currently at $1606AUD an ounce.
Movers and Shakers
Mixed results across the sectors, the biggest losers being IT, the winners property and utilities as bulls and bears battled it out on the bourse.
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), it was a generally good day for the banks, with ANZ finishing flat, still above its 200 day moving average and building on its short term uptrend on the daily charts, whilst the big brother of banks, the Commonwealth (CBA) was up 0.5%, dicing again with its resistance level of $50 per share and remaining in a “bullish neutral” position as investors digested its latest record “profit“.
National Australia Bank (NAB) finished flat and remains neutral, whilst Westpac (WBC) was up slightly, still below its 200 day moving average and also remaining in a neutral stance in the short term, but building a bullish case nonetheless.
Quickly checking out Macquarie (MQG), the Millionaire Factory continues to correct from its breakout, down nearly 1% today and now below its long term moving average:
To the holes, where BHP Billiton (BHP) finished in the red, down 0.2% – dragging the market – and seems stuck for now as investors digest the macro and micro news around the Big Western Australian. Its “twin” Rio Tinto (RIO), also continued its correction, down 0.6%, following iron ore and falling below its 200 day moving average, resistance at $70 a share and short term trend line:
Gold miner Newcrest Mining (NCM) finished flat and remains on trend, hopefully staying upright as gold may follow other Asian risk assets up, and to finish out the ASX8, Woodside Petroleum (WPL) also was flat, up slightly and staying bearishly neutral for now.
The overnight futures for the ASX200 are flat at 4250 while other equity futures are up, with significant data releases including US retail sales and French/German GDP numbers able to spook the markets, amongst the other noise and frivolity.