Could our market have found a bottom? Big gains on Wall Street and European bourses along with a jump in commodity prices are setting the stage for a positive start to trading today.
The futures market is pricing in a 0.8% advance for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning but that's not the only reason to feel bullish about the short-term outlook for our market.
The index has managed to defy a weak open to close above what most traders were expecting over the past two days, which indicates that bargain hunters are keen to make the most of any market dip. But the start of reporting season next week could change sentiment.
This isn't something to worry about today though as resource stocks like Oil Search Limited (ASX: OSH) and BHP Billion Limited (ASX: BHP) are tipped to respond positively to the 1.2% jump in the West Texas Intermediate (WTI) oil price to $US47.98 a barrel and a 2.1% increase in the iron ore price to a near four-week high of $US53.45 a tonne.
BHP will also be in focus on news that it will cut the number of staff at its Melbourne headquarters by a quarter in a bid to streamline costs due to falling commodity prices as most analysts still believe that iron ore will fall below $US50 a tonne in the current half.
Eyes will be on base metals miner Independence Group NL (ASX: IGO) too as it is expected to post its fourth quarter production result today and one broker has changed its recommendation on the stock to "neutral" from "buy" ahead of the announcement.
Copper miner Sandfire Resources NL (ASX: SFR) and oil & gas company Beach Energy Ltd (ASX: BPT) will also be handing in their quarterly numbers today.
The bounce in the oil price won't save marine engineering company MMA Offshore Ltd (ASX: MRM) from making writedowns. The company, which services the offshore oil & gas industry, said it will take a $120 million impairment charge due to the low oil price environment.
Elsewhere, National Australia Bank Ltd. (ASX: NAB) will be in the spotlight as the Australian Financial Review speculates that it will have two windows of opportunity to divest its $5 billion Clydesdale Bank if it is to meet its self-imposed deadline of completing the deal by year end.
One is after the August reporting season and the other is after the bank releases its results at the end of October.
Staffing solutions company Programmed Maintenance Services Limited (ASX: PRG) will hold its annual general meeting today – not yesterday as I had initially reported. The AGM will be an interesting one to watch as the company is likely to give a further update on its merger with Skilled Group Ltd. (ASX: SKE).
Big changes to the brands it carries and staff cuts at embattled department store Myer Holdings Ltd (ASX: MYR) will put the stock under the microscope today as the jury is still out on how successful the strategy will be in turning around its fortune.
Investors will also be mulling telecommunications giant Telstra Corporation Ltd's (ASX: TLS) decision to offer streaming video, which will compete directly with pay TV operator Foxtel. Telstra owns part of Foxtel.