Here’s what to expect on the ASX 200 today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks set to open marginally higher this morning as it hopes to extend its six-week winning streak.

Here’s a recap:

  • FTSE 100 (UK): up 1.7%
  • DAX (Germany): up 1.23%
  • CAC 40 (France): up 1.67%
  • Dow Jones (USA): up 0.38%
  • NASDAQ (USA): up 1.21%

Equity markets around the world received a boost on Friday night, despite rising expectations that the US Federal Reserve will look to hike interest rates as soon as next month.

While some investors are anxious of what an interest rate hike could mean for the world’s biggest economy, others are reminding themselves that higher interest rates reflect a recovering economy. Indeed, it would really send quite a positive message regarding global growth.

Closer to home, the Sydney Futures Exchange is tipping a 3-point gain for the S&P/ASX 200 when the market opens.

BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could be in the spotlight again after the iron ore price rose 2.7% during the latest session, according to The Metal Bulletin.

Elsewhere in the commodities sector, Bluescope Steel Limited (ASX: BSL) could be in for a good day after it updated its earnings guidance. It said it now expects underlying earnings before interest and tax (EBIT) for the six months ending 30 June 2016 to be around $270 million. Previous guidance, provided in February, forecast up to $209 million.

Looking at the major banks, The Wall Street Journal has reported that hedge funds are betting against the big four, suggesting there could be trouble ahead.

Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) are all sitting in the red since the beginning of the year, and could have even further to fall if the hedge funds are correct. Australia and New Zealand Banking Group (ASX: ANZ) has been the worst so far in 2016, losing 10.2% thus far.

JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) could also be in focus again. The pair are both said to be interested in acquiring The Good Guys electronics retail chain.

In broker news, UBS has reportedly cut its price target on Primary Health Care Limited (ASX: PRY) by 4.7% to $4.30, according to Dow Jones Newswires. Notably, that would still mark a 19.4% improvement on today’s share price of $3.60.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. 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.

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