Aussie market looks set to open flat later this morning, despite US and European stocks rebounding on hopes of more eurozone monetary stimulus.
The December SPI futures contract is dead flat, at 5003.
Whilst U.S. markets advanced, with the Dow Jones putting on 236 points, most of these gains were already price in yesterday during the Asian session.
In local economic news today, the Reserve Bank of Australia releases its index of commodity prices for September while the Australian Bureau of Statistics release August’s job vacancies figures.
Meanwhile, the Australian Industry Group’s performance of manufacturing (PMI) index for September is due out, as is the RP Data CoreLogic Home Value Index for the same month.
No major equities news is expected.
– SPI futures flat at 5003
– AUD at 70.14 US cents, 84.13 Japanese yen, 62.79 Euro cents and 46.41 British pence
– On Wall St, S&P 500 +1.9%, Dow +1.5%, Nasdaq +2.3%
– In Europe, Stoxx 50 +2.3%, FTSE +2.6%, CAC +2.6%, DAX +2.2%
– China’s will be shut from Thursday for weeklong National Day holidays.
– Spot gold slipped 1% at $US1115.30 an ounce at 3.05pm New York time
– Iron ore added 0.5% to $US56.32 per tonne
– Brent crude settled up 14 US cents to $US48.37 a barrel
What’s on today:
September AiG Performance of manufacturing, Australian September monthly home prices, August job vacancies; US September ISM manufacturing index; China September purchasing managers’ index.
Stocks in focus:
Credit Suisse cut its Brambles recommendation to “underperform” from “outperform” and dropped the price target to $8.60 from $11 a share. “We now expect capital intensity to increase and margin to remain weak over the next couple years. Efforts to rectify previous pallet repair lapses are likely to increase plant costs, while transport costs could continue to hit margin.”
Deutsche Bank says Alumina is well-positioned and undervalued and has a “buy” on the stock. In an interview with the AFR’s Jamie Freed, Alcoa chief executive Klaus Kleinfeld says his company’s plans to demerge its upstream and downstream businesses will give the company “optionality” for dealmaking, with analysts pointing to the potential for multi-billion dollar transactions involving Alumina Ltd, Rio Tinto and South32.
Trading ex dividend today:
Austbrokers, Clime Capital, Joyce Corp.