The ASX Today

After hitting a four-month higher on Friday, the ASX is hinting it will continue climbing higher this morning.

The ASX is hinting it will continue climbing higher on the back of Friday's momentum when it hit a four-month high.  

ASX SPI 200 Futures traders added 12 points over the weekend. US equities closed higher on Friday and synchronised and positive economic data could feed into further broad-based gains today, strategists believe.  

Chris Weston, an analyst at IG in Melbourne, made a good observation, that not only did every sector in the ASX 200 rally last week, the percentage of companies above their 20-day average has increased to 81 per cent — “participation has been strong, which is another bullish sign”.

Commodity price rises could prop up the ASX 200 today, which gained 1.8 per cent last week as miners and banks led the charge. 

KEY POINTS

  • Miners to find more support today on the back of Chinese import data from Friday
  • Cross-sector gains looking more than likely
  • Higher Australian dollar (US78.88c) buoyed by strong data releases last week, US dollar weakness, with US79.1c the next target
  • Overseas arrivals and departures data released locally
  • Lending finance figures slated for release
  • BlueScope Steel, Orora and several smaller companies paying dividends today

Base metals rose on Friday, supported by Chinese import and export data. The reports showed that China is a strong contributor to the synchronised global growth that strategists and economists have been discussing. Imports grew 18.7 per cent from a year ago in September against expectations of a 13.5 per cent increase. Exports fell short of expectations, but were still up 8.1 per cent. 

“Even if international investors see the local market as overly concentrated on banks and miners and largely irrelevant in the new global economic context where other sectors dominate interest, the reality is the positive backdrop will support, or should support, the local market,” said AxiTrader chief market strategist Greg McKenna.

“So the chance of a catch up to US and other market rallies is growing. A range break would imply a move back to 5950, probably 6000.”

Iron ore and oil prices both rose higher at the end of last week, the former in particular also supported by Chinese data. WTI oil finished Friday up 1.6 per cent day-on-day to $US51.45, and Brent crude closed at $US57.17 to be up around 3 per cent on the week. 

Central bank commentary helped drive gold higher last week gold a boost last week — it's at $US1304 an ounce this morning.

Market Summary: 
IndexLastPoints ( /-)Change (%)
Dow22,871.7230.710.13
S&P 5002,553.172.240.09
Nasdaq6,605.8014.290.22
FTSE 1007,535.44-20.80-0.28
DAX12,991.878.980.07

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