The local S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) is expected to trade firmly higher following modestly positive leads from international markets overnight.

Here’s a recap:

  • Dow Jones (USA): up 0.06%
  • NASDAQ (USA): down 0.24%
  • FTSE 100 (UK): up 0.72%
  • DAX (Germany): up 0.26%
  • EURO STOXX 50 (Europe): up 0.42%

In the US, shares pared back from their heavy losses on Monday following the selloff on China’s share market. European shares also finished mostly highly.

Following Monday’s 2.39% and 4.28% plummet in both UK and German markets, respectively, fresh optimism from China buoyed commodity prices which in turn lifted shares in major resources companies overnight.

FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) snapped back some of their big losses to climb 1.46% and 1.94%, respectively.

Closer to home, the Sydney Futures Exchange is tipping a 15-point, or 0.2%, increase in the S&P/ASX 200 at the open.

Shareholders in the major banks, such as Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), will hope the market reverses yesterday’s losses.

Also, in focus will be retail shares, Harvey Norman Holdings Limited (ASX: HVN) and Breville Group Ltd (ASX: BRG). In the wake of the collapse of Dick Smith Holdings Ltd (ASX: DSH), shares of both companies rallied.

It’ll also be interesting to see how investors react to news from junior iron ore miner, Grange Resources Limited (ASX: GRR). In the wake of plunging iron ore prices, the $105 million mining company said it had realised significant cost reductions, but redundancies are likely.

Dow Jones Newswires is reporting Sydney Airport Holdings Ltd (ASX: SYD) could appoint Mantra Group Ltd (ASX: MTR) to manage a new 138-room hotel, slated to start construction in April. In September, The Australian reported that Australia’s largest airport operator would develop a total of three hotels as it plays catch-up with international counterparts.

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Motley Fool writer/analyst Owen Raszkiewicz has no position in any stocks mentioned.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.