The Aussie market is poised to return to its winning ways today, after most international markets rallied overnight on hopes of a Greek debt breakthrough deal.
The SPI futures contract is up 32 points, at 5784.
The Greek stock exchange jumped almost eight per cent after the new government revealed that it has a 10-point plan to convince sceptical creditors to ease the country’s bailout obligations.
U.S. stocks climbed steadily on hopes that embattled Greece and its creditors are nearing a compromise to avert a default, even though both sides continued to reiterate their stance.
European and U.S. stocks got a boost after news reports suggesting the EU Commission was considering a six-month debt extension. Shortly after, the rumor was dismissed by Germany’s finance minister Wolfgang Schäuble, but investors remained optimistic.
In local economic news today, the Australian Bureau of Statistics releases December housing finance figures while the Westpac/Melbourne Institute Survey of Consumer Sentiment is also due out.
In equities news, Commonwealth Bank, Suncorp Group, AGL Energy, CSL, Boral, Stockland, Skilled Group, Goodman Fielder, Domino’s Pizza, OZ Minerals, Computershare and BWP Trust are expected to post half year results while Genworth Mortgage Insurance is slated to release full year results.
- SPI futures up 17pts at 5770
- AUD at 77.61 US cents, 92.66 Japanese yen, 68.63 Euro cents and 50.94 British pence.
- In late trade, S&P 500 +0.7%, Dow +0.7%, Nasdaq +1%
- In Europe, Stoxx 50 +1.1%, FTSE -0.1%, CAC +1%, DAX +0.9%
- Spot gold down $US5.77 or 0.5% to $US1233.26 an ounce
- Brent oil down $US1.96 or 3.4% to $US56.38 per barrel
- WTI crude down $US2.66 or 5pc to $US50.20
What’s on today:
Australia housing finance, consumer sentiment.
Stocks to watch:
Earnings from CBA, AGL Energy, Boral, BWP Trust, CSL, Domino’s Pizza, Goodman Fielder, OZ Minerals, Stockland, Suncorp.
RBC Capital Markets is maintaining an “underperform, speculative risk” rating on Energy Resources Australia given the material uncertainty around the Ranger 3 Deeps (R3D) development, which is the key driver of our valuation, and a soft near-and medium-term uranium outlook.
UBS is “neutral” on Westfield Corp with a 12-month price target of $10.10, up from a prior $8.15 a share.