The ASX is on track for a new 2017 closing high, thanks to a surprisingly strong rally that still has some puff in it.
A close above 5816 points would also mark a new two-year closing high, while the intraday high of 5833, hit on February 16, might still be a hurdle too high for this session.
“This is the most bullish sentiment we’ve seen this year so far,” said Atlantic Pacific Securities client adviser Gary Huxtable.
“It didn’t take that long for our market to break out of the 100 point range this morning. There’s every chance that it will be our highest close of the year,” he added.
According to Huxtable, the slight deflation of the Trump trade has worked in favour of the banks over the last couple of sessions.
Banks are the clear leaders of the rally, with CBA soaring 2.2 per cent and moving within 80 cents of a 52-week high.
The recent round of mortgage rate rises probably isn’t hurting the banks either, with Macquarie calculating that the “repricing intiatives” will add about 3 per cent to earnings.
“With last week’s US health bill debacle now in the rear view mirror, and a light economic calendar this week, a lack of near-term anxiety producing events is also a likely catalyst for the improvement in investor mood today,” Huxtable said.