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Published 22 February 2013 12:22, Updated 27 February 2013 22:51
The ASX 200 was holding above 5040 shortly after noon.
The ASX 200’s widely expected pull-back below the 5000 mark happened a few days later than expected and has not lasted long – the index roared back above the psychologically important barrier on Friday morning, recouping more than half Thursday’s $35 billion sell-off.
Not even Reserve Bank governor Glenn Stevens’s comforting comments to the House of Representatives economics committee about global economic conditions, widely interpreted as a signal that the bank’s interest rate cutting cycle is at an end, stopped funds flowing back into shares. The ASX 200 was holding above 5040 shortly after noon.
When pressed, Stevens did allow that “an easing is more likely than a tightening”, but the Australian dollar – more popular the higher Australia’s cash rate compared with other countries – rallied more than US1¢ to trade above $US1.03.