The Australian market bounced today.
Opening lower this morning, the ASX S&P 200 managed to shake off overnight US weakness and concerns about Europe’s banking system to close up 0.4%.
Qantas made the biggest gains today, up more than 6.5% to close at $1.285 a share.
CMC Markets chief markets strategist Michael McCarthy said low trading volumes and an overall lack of activity on the market could mean traders are waiting for upcoming reports from major US companies which will filter through over the next week. Citigroup, JP Morgan, Goldman Sachs, Intel and Yahoo all report early next week.
“While these individual reports are unlikely to directly affect Australian stocks, earnings growth is required to support a US market within a whisper of all-time highs. Any earnings disappointment could spark selling that will echo around the globe,” he said.
“Low volumes all week may point to a preponderance of short term trading interests selling the market, and a lack of follow through selling from investors, and some bargain hunting, has started a minor scramble to cover short positions.”