Aussie market looks set to open higher later this morning, following strong gains on Wall Street and in Europe overnight.
The September SPI futures contract is up 45 points, at 5145.
US stocks rallied more than 2% overnight, joining the global rally which started in Asia yesterday, and was bolstered by improved eurozone economic data last evening. .
In local economic news today, Reserve Bank of Australia deputy governor Philip Lowe is slated to speak at a Committee for Economic Development of Australia function in Melbourne while RBA assistant governor (financial markets) Guy Debelle speaks at a FX Global Code of Conduct briefing in London.
Elsehwere, the ABS releases July’s housing finance data and the Westpac/Melbourne Institute Survey of Consumer Sentiment is also due out.
In equities news, Echo Entertainment chief executive Matt Bekier speaks about the tourism industry’s future at American Chamber of Commerce in Australia lunch in Sydney and CUA releases annual earnings results.
– SPI futures up 45pts to 5145
– AUD at 70.18 US cents, 84.26 Japanese yen, 62.72 Euro cents and 45.64 British pence
– On Wall St, S&P 500 S&P +2.5%, Dow +2.4%, Nasdaq +2.7%
– In Europe, Stoxx 50 +1.1%, FTSE +1.2%, CAC +1.1%, DAX +1.6%
– Iron ore +1% to $US57.42 a dry ton on Tuesday
– Spot gold up $US2.40 or 0.2% to $US1121.75 an ounce
– Brent crude up $US1.74 or 3.7% to $US49.37 a barrel
What’s on today:
Australia Westpac consumer confidence, housing finance, RBA deputy governor Philip Lowe speech in Melbourne midday, RBA’s Guy Debelle in London at 7pm (AEST) briefing on FX global code of conduct, US July consumer credit.
Stocks in focus:
Oil Search is set to reject an $11.6 billion takeover offer from rival Woodside Petroleum, arguing the all share bid dramatically under values its LNG assets in Papua New Guinea.
Deutsche Bank has a ‘buy’ recommendation on Westpac Banking Corporation and a $34.65 target price. In a note, Deutsche said WBC’s cost targets were “broadly in line”and its ROE target “presents upside”.
Credit Suisse has a “neutral” rating on Crown Limited (CWN) and a $12.60 target price.
Trading ex dividend today: Air New Zealand, ANZ, BHP Billiton, Brambles, FlexiGroup, Heritage Bank, Intueri Education Group, IRESS, Monadelphous, Monash IVF, Origin Energy, Pental, Sonic Healthcare, Tassal Group, Trade Me Group, Woolworths, nib holdings.