The Aussie market is poised to open higher later this morning, after US stocks finished mostly higher overnight amid mixed economic data, but a disappointing earnings report from Disney weighed on the Dow.
The September SPI futures contract is up 18 points, at 5630.
In local economic news today, the Australian Bureau of Statistics releases labour force figures for July, while the Financial Services Council’s annual conference continues in Brisbane.
In equities news, Downer EDI is expected to post full year results while Rio Tinto is slated to post half year results.
Coca Cola Amatil managing director Alison Watkins is listed to speak at a QUT Business Leaders Forum, and Australia Post chief executive Ahmed Fahour is expected to speak at an Australian-Israel Chamber of Commerce lunch in Sydney.
– SPI futures up 18pts at 5630
– AUD at 73.53 US cents, 91.83 Japanese yen, 67.46 Euro cents and 47.15 British pence
– On Wall St, S&P 500 , Dow -0.1%, s+P +0.3%, Nasdaq +0.7%
– In Europe, Stoxx 50 +1.6%, FTSE +1%, CAC 1.7%, DAX 1.6%
– In London, BHP Billiton +3.58%, Rio Tinto +3.93%
– Iron ore jumps 2.7% to one-month high of $US56.78
– Spot gold down 0.3% to $US1084.85 an ounce
– Brent crude down 0.8% to $US49.61 a barrel
What’s on today:
Australia employment and unemployment data
Bank of England announces its Monetary Policy Committee’s August interest-rate decision, together with minutes of the meeting and quarterly economic forecasts;
Germany factory orders
US jobless claims.
Stocks in focus:
Hyperion Asset Management’s Joel Gray says the sell signal for the Australian banks has been building for some time. “The sector has enjoyed a massive rerating over the past couple of years, riding the market’s relentless hunt for yield against a backdrop of ongoing easy monetary policy. However, the banks face substantial structural headwinds and are unlikely to achieve the strong returns over the next five years that we have seen in the past.”
Deutsche Bank retains a “buy” on G8 Education and kept its $4.40 price target unchanged with the stock trading at a 23 per cent discount. “Although GEM’s hostile bid for AFJ represents a divergence from the self-funded growth strategy, we continue to see strategic merit in taking out the other listed player at a reasonable EBIT multiple of 5.4x after synergies.”