The nervous wait for a new debt deal for Greece and a general reluctance from professional investors to make big moves ahead of the end of the financial year are prompting investors to sit on their hands this morning.
The futures market is pointing to a flat start for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) but it probably won't be resource stocks that will keep our market afloat today as commodities lost ground on Friday night.
Higher cost iron ore producers like Fortescue Metals Group Limited (ASX: FMG) could come under pressure as the price of the steel making ingredient fell 0.7% to a one-month low of $US61.36 a tonne and experts are expecting it to fall towards $US50 a tonne if not lower.
The 1.4% fall in copper to $US2.58 a pound on weak Chinese demand will also weigh on OZ Minerals Limited (ASX: OZL) and news that copper production at BHP Billiton Limited's (ASX: BHP) Olympic Dam project will restart sooner than expected could put further downward pressure on the metal.
Don't expect energy stocks like Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX:WPL) to offset the gloom either as the West Texas Intermediate (WTI) crude oil price tumbled 1.4% to $US59.61 a barrel.
However, bank stocks are likely to continue to attract bargain hunters as the sector received a few upgrades from analysts even as the Commonwealth Bank of Australia's (ASX: CBA) move to tighten home loan lending will put focus on a property bubble fear that is afflicting parts of our property market.
National Australia Bank Ltd. (ASX: NAB) has been upgraded to "neutral" from "underweight" by JPMorgan with a price target of $34.55, while Westpac Banking Corp (ASX: WBC) was lifted to "overweight" from "neutral" by analysts at CBA.
Listed wealth management companies will be under an uncomfortable spotlight as IOOF Holdings Limited (ASX: IFL) faces allegations of insider trading, cheating and other unethical behavior, according to a Fairfax Media Limited (ASX: FXJ) report.
The news will put pressure on the government to launch a royal commission into the sector and prompt investors to ask if other listed fund managers could be involved.
Meanwhile, document management company Recall Holdings Ltd (ASX: REC) issued a 2014-15 earnings guidance and said revenue will grow around 7-8% in constant currency terms, and uranium miner Energy Resources of Australia Limited (ASX: ERA) will be the topic of conversation after its chairman and two directors resigned after it scrapped its mine expansion.
Finally, investors will also be keenly eyeing embattled grocery distributor Metcash Limited (ASX: MTS) after 27.8 million, or 3%, of its shares were crossed at its last closing price of $1.17. It may be nothing, but block trades can sometimes give an early indication of corporate interest and the news comes at a time when Metcash is undergoing a major restructure.
