Steady gains, but caution remains

Steady gains, but caution remains

By William Leys (Sales Trader, CMC Markets)
22 April 2013

The ASX200 is moderately higher in mid-morning trade, following solid offshore leads on Friday night.

Better than expected earnings results from tech giants Google and Microsoft was the key driver in the US, with the S&P500 in particular posting strong gains. Volumes were somewhat light though, perhaps indicating a general lack of market conviction in the rally.

Locally, the gains are broad based. The rebound in certain commodity prices, namely gold and oil, has provided some relief from the recent selling pressure, but copper continued its recent slide, and investors remain cautious.

Attention will be fixed on the upcoming IMF and World Bank meetings, as well as the G20 summit. These discussions will shed some light on the general state of health of the major economic regions, and in doing so, influence global sentiment.

www.cmcmarkets.com

ENDS

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