Our market may not find enough in the tank to muster another rally today following yesterday's surge after Wall Street gave up stellar early gains to finish deep in the red overnight.
The US S&P 500 was up close to 3% but reversed sharply to close down 1.4% in the final hour of trade as investors started worrying that the cut in Chinese interest rates actually heralds more bad than good news for China and the global economy.
The futures market is pointing to a 0.1% fall at the open for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) although it was pointing to a steeper 0.6% decline earlier this morning. We might actually be able to finish with decent gains today and the bounce in commodities will help.
The West Texas Intermediate oil price jumped 2.8% to $US39.31 a barrel as copper climbed 2.3% to $US2.3005 a pound and iron ore inched up 0.32% to $US53.45 a tonne.
Comments from BHP Billiton Limited (ASX: BHP) when it released its full year results may have helped. The chief executive of the world's biggest miner said China's steel production has yet to peak and that the Chinese economy has bottomed.
What is also interesting is the comment from the managing director of energy company Oil Search Limited (ASX: OSH) who said that energy stocks are cheaper than the assets they own. If that continues, it could set the sector up for a spate of mergers and acquisitions.
The ongoing profit reporting season will give investors a lot of other things to think about as well. Shopping centre giant Westfield Corp Ltd (ASX: WFD) will take centre stage after it posted a first half funds from operations of $380 million and reaffirmed its full year guidance, while diversified investment company Seven Group Holdings Ltd (ASX: SVW) reported a 238% plunge in its bottom line to a net loss of $360.3 million for 2014-15.
Other notable companies that will hand in their earnings numbers today include gas pipeline company APA Group (ASX: APA), packaging company Pact Group Holdings Ltd (ASX: PGH), engineering contractor Worleyparsons Limited (ASX: WOR), insurance broker Steadfast Group Ltd (ASX: SDF), property company Charter Hall Group (ASX: CHC) and shipbuilder Austal Limited (ASX: ASB).
Meanwhile, companies that will trade without their dividend entitlements today include beverage giant Coca-Cola Amatil Ltd (ASX: CCL), travel insurer Cover-More Group Ltd (ASX: CVO), UK fund manager Henerson Group plc (ASX: HGG), electronics retailer JB Hi-Fi Limited (ASX: JBH), medical facilities operator Primary Health Care Limited (ASX: PRY), global insurer QBE Insurance Group Ltd (ASX: QBE) and energy companies Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL).
In other news, fuel distributor Caltex Australia Limited (ASX: CTX) has hired Citigroup to advise the company on capital management, according to The Australian; while private equity firm Pacific Equity Partners is looking to sell its stake in facility and laundry services company Spotless Group Holdings Ltd (ASX: SPO) following the company's big rally on its results yesterday, reports the Australian Financial Review.
