Volumes Sink as Market Rises
A bounce in US shares and a second night of higher metals prices are fostering support from local investors today. Volumes in both shares and futures are low, and commitment from investors largely absent in thin trading. Energy stocks take the morning session honours, despite further weakness in oil prices, and the volatility index is sinking with investor fears.
Investors Christmas lists looked stuffed with Energy, Healthcare and Industrial stocks, judging from the sectoral performance. Telstra’s small drop means Telcos are the only sector in the red, with a lack of enthusiasm for banks constraining the overall market performance. Flight Centre and Bluescope Steel are both strongly higher, despite a lack of direct news flow, pointing to the combined effects of bargain hunting and poor liquidity.
In the second half of the session the Leading Index for November is published in China, and Japan will release a read on small business confidence. A jump above the breakeven 50 mark in confidence could spur buying if it leads to the perception the three arrows program is gaining traction.