This should be a good day for investors as our market is set to rally on the back of higher commodity prices and a positive lead from Wall Street.
The futures market is pricing in a 0.5% gain for the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) and resource stocks will lead the charge higher for a second day in a row as the gold price bounced 0.6% to $US1,194 an ounce after suffering its worst drop in six weeks the day before, and oil jumped to a four-month high.
More significantly, iron ore has made further gains, a day after its stellar bounce. The Metal Bulletin reports that iron ore added another 1.4% to $US54.82 a tonne as analysts from bond fund manager PIMCO and Australia and New Zealand Banking Group (ASX: ANZ) wonder aloud if the price of the commodity has found a floor.
While the jury is still out on this issue, you can expect BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and their smaller rivals like BC Iron Limited (ASX: BCI) to deliver big gains today.
Energy stocks like Woodside Petroleum Limited (ASX: WPL), Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) should also register a decent advance as the West Texas Intermediate (WTI) crude oil benchmark jumped 2.4% to $US57.48 a barrel overnight.
Shareholders of Newcrest Mining Limited (ASX: NCM) will hope that the jump in the gold price will help the miner recover from yesterday's 3.4% loss following the release of its quarterly report.
Insurers will also be in the spotlight with Suncorp Group Limited (ASX: SUN) reporting that it has received 7,500 claims in the wake of the devastating storm in New South Wales.
Insurance Australia Group Ltd (ASX: IAG) said yesterday that it has received 10,000 claims, but it was too early to put a dollar figure on the claims.
A report in the Australian Financial Review predicting a spike in mergers and acquisitions will also be throwing the spotlight on stocks like grain handler Graincorp Ltd (ASX: GNC), mortgage broker Mortgage Choice Limited (ASX: MOC) and agri-chemical supplier Nufarm Limited (ASX: NUF).
Sleep disorder treatment device maker ResMed Inc. (CHESS) (ASX: RMD) is also likely to be under pressure today, after its quarterly reports announcement in the US overnight disappointed the market.
Meanwhile, share registry business Computershare Limited (ASX: CPU) got hit with a downgrade to "hold" from "buy" by Morningstar, although the stock research house upgraded fund manager Platinum Asset Management Limited (ASX: PTM) to a "buy" from "hold" and diversified services group Spotless Group Holdings Ltd (ASX: SPO) to a "hold" from "sell".