Market closes in the black
The Australian sharemarket finished a lacklustre session firmer on low volumes as global investors waited on the sidelines for US non-farm payroll data tonight for evidence of the hoped post-winter recovery.
Following the flat lead from Wall Street last night the S&P/ASX 200 index traded in a tight range in and out of the red before closing 9.3 points, or 0.17 per cent, up at 5458.1.
The uneasy calm was ensured by the closure of Chinese markets for a public holiday, but a shortfall on the consensus expectation for a 218,000 increase in US jobs will prove a significant hit to bullish sentiment.
In Tokyo the Nikkei index was off 0.2 per cent.
The Australian dollar was also little changed at US92.80, but government 10-year yields fell 3.5 points to a seven-month low of 3.905 per cent.
US data last night was mixed, but US treasury 10-year yields tumbled 7 points to 2.59 per cent, critical technical support, as personal spending rose 0.9 per cent in March but the savings rate fell to the lowest level since 2008.
The US ISM manufacturing index rose but the dismal March-quarter GDP growth of just 0.1 per cent was expected to be cut further following the release of construction spending growth of just 0.2 per cent in March, well short of forecasts and actual data used in the GDP calculation.
ANZ strategist Kerry Duce wrote in a client note that the ANZ global leading index eased further in April, but they considered the "loss of momentum" as fairly advanced.
"Tentative signs are emerging that a base in downwards momentum could form by around (September-quarter) 2014, led by the US and possibly China," he said.
"The gap between the sharp decline in the ANZ inventory pulse and still-buoyant ANZ risk appetite suggests that liquidity continues to allow markets to look through cycle weakness, including for emerging markets."
Gold was steady at $US1283 an ounce and copper was little changed at $US6615 a tonne.
More to come…
