Our market is heading for a solid bounce at the opening this morning after the predicted sell off and flight to safety in the wake of the Paris attacks on Friday night, failed to eventuate.
After early falls all major markets in Europe and the US – bar France and Italy – ended with gains for the day.
Gold retreated as did oil prices as the early boosts to both commodities faded. Oil still ended more than 2% higher in the US, while gold prices were up around $US4 an ounce.
Wall Street was up around 1% for the Dow and S&P 500, a little less for the Nasdaq.
The overnight futures market had the ASX 200 opening with gains of more than 45 points – one of its strongest early gains for some sessions if it happens.
That was after the index yesterday briefly fell below 5000 points for the first time since late September as the Paris terrorism attacks added to investor worries but bounced thanks to strong buying in energy stocks.
The ASX 200 initially fell as low as 4979 in early trade before rebounding and at close of trading the index’s losses had been trimmed a touch to 0.9%, or 48 points, at 5003.8 and the All Ordinaries closed 0.9% or 47 points lower at 5064.5.
Meanwhile a stronger dollar (there was some safe haven buying, especially against the euro) rose and that saw the Aussie dollar dip under 71 US cents for the first time for more than a week.
