ASX Opens Higher

Update @ 12:18: Well the opening higher was short lived. Check out the All Ords Chart (AORD) – it shows a drop straight down – not down around 11 points. Not one stock has posted “large” gains with most trading in a range of between $0.02 and $0.25. 

The ASX (AORD) has opened slightly higher on open with the market rebounding from yesterdays woes. Most of the market today will be trading on the fact that oil is below the $70 USD a barrel market for the first time since 2007.

The market should see some improvement from the mining stocks on the back of the lower oil prices, and in early trading BHP (BHP) was already slightly higher. Yesterday, resource stocks were hammered due to the lower level of commodity prices and an expectation that demand from China is falling which will mean commodity prices should fall even further.

The gain maybe short lived if more data is released in the US which swings investors focus back to the core underlying fundamentals of the United States retail market and overall consumer spending statistics. On the positive, news of interests rates cuts – not only in the United States but globally – maybe coming which could spur markets up again.

Updates will continue throughout the day.