Stand by for another positive day as our market is poised to open higher on the back of gains in US and European shares and further rises in commodity prices.
Global equities have been buoyed by good corporate earnings and growing confidence in the US economy, and that's enough to prompt futures traders to bet on a 0.7% rise in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning. The index made similar gains on Wednesday.
Resource stocks are well placed to lead the charge as a 1.7% jump in the West Texas Intermediate (WTI) oil price to $US48.79 a barrel should light a fire under Santos Ltd (ASX:STO) and Oil Search Limited (ASX: OSH).
Beach Energy Ltd (ASX: BPT) should also enjoy a good day after three brokers upgraded their recommendation on the stock following the release of its quarterly result yesterday.
But it's the iron ore miners like Fortescue Metals Group Limited (ASX: FMG) and Atlas Iron Limited (AGO) that are likely to dominate attention as the price of the steel-making ingredient surged 4.6% to $US55.89 a tonne.
Iron ore's recent bounce of 25% puts it in a technical bull market, which is defined as a 20% or more gain from the last trough.
But don't think it's smooth sailing for iron ore from here. I think the party won't last as an impending oversupply of the raw material is likely to force the price down to below $US50 a tonne before year end. I suspect the right time to be bargain hunting iron ore miners – outside of industry giants BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) – is in early 2016.
There's plenty of earnings news for investors to chew on today as well. Consumer and industrial goods supplier GUD Holdings Limited (ASX: GUD) is expected to release its full year result.
Uranium miner Energy Resources of Australia Limited (ASX: ERA), UK-focused fund manager Henderson Group plc (ASX: HGG) and construction and engineering products supplier Korvest Limited (ASX: KOV) are also expected to announce their half year result. We will bring you more detailed analysis on the results later today.
Meanwhile, you can expect quarterly updates from oil & gas junior AWE Limited (ASX: AWE) and gold miner OceanaGold Corporation (ASX: OGC), while aged care facilities operator Estia Health Ltd (ASX: EHE) will be in the spotlight after it announced the acquisition of four aged care facilities in Victoria that are expected to generate a return on capital employed of 27.5%.
Other companies that will also be in focus include QBE Insurance Group Ltd (ASX: QBE) on news that credit rating agency Fitch has upgraded the outlook of the insurer to "stable" from "negative", shopping centre developer Scentre Group Ltd (ASX: SCG) after The Australian reported that it is planning to develop malls in Perth, and laboratory testing services group ALS Ltd (ASX: ALQ) as it holds its annual general meeting in Brisbane.
