The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) is expected to trade higher following positive leads from US markets overnight.
Here's a recap:
- Dow Jones (USA): up 0.79%
- NASDAQ (USA): up 0.86%
- FTSE 100 (UK): down 0.98%
- DAX (Germany): down 2.44%
- EURO STOXX 50 (Europe): down 2.1%
In the US, shares of Facebook Inc and Amazon combined with gains in oil prices to take markets firmly higher. In Europe, markets suffered a kneejerk reaction to comments from the US Federal Reserve hinting economic growth slowed in the final days of 2015.
FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) closed 1.45% higher and 0.99% lower, respectively.
Closer to home, the Sydney Futures Exchange is tipping a 14-point, or 0.2%, rise in the S&P/ASX 200.
Shares in focus on our market today will include the major iron ore miners, such as Rio, BHP and Fortescue Metals Group Limited (ASX: FMG) following a decision by the world's largest miner, Vale SA, to cut its 2016 dividend to zero. Despite exceptionally low break-even costs, plummeting iron ore prices have crippled the miner's profit margins and forced it to reconsider paying a dividend to shareholders.
Shares of oil producers Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) will also be in focus following a third consecutive day of gains in commodity prices overnight.
An anxiously awaited report from law firm Shine Corporate Ltd (ASX: SHJ) will likely see its share price trade sharply lower today. This morning, Shine issued a detailed announcement revealing provisions totaling $17.5 million, a 50% cut in 2016 profit guidance, an additional $10.5 million impact from a 'business update' and a scrapping of its interim dividend. The share price reaction from its larger rival Slater & Gordon Limited (ASX: SGH) is far from certain, but significant volatility can be expected.
XERO FPO NZ (ASX: XRO), Freelancer Ltd (ASX: FLN) and Nanosonics Ltd. (ASX: NAN) issued quarterly reports today. While shares of Urbanise.com Ltd (ASX: UBN) entered a trading halt pending a capital raising.
In broker news, analysts at Morgans upped their price target on REA Group (ASX: REA) shares by 15% to $55.61, while Bell Potter analysts cut their Western Areas Ltd (ASX: WSA) price target 21% to $2.85, according to Dow Jones Newswires.
