Our market will claw back some of yesterday's losses this morning on the back of strong leads from Wall Street and European shares.
But the futures market is pricing in a relatively modest 0.36% head start for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) as a further slide in most commodities due to the firming US dollar is expected to weigh on resource stocks.
Iron ore is marching to its own beat though. The steel making ingredient marked its fifth day of gains when it advanced 0.5% to $US63.10 a tonne.
It remains to be seen if that is enough to give Fortescue Metals Group Limited (ASX: FMG) or Rio Tinto Limited (ASX: RIO) a boost as both stocks tumbled 1.7% each yesterday, despite the rising commodity price.
Energy company Oil Search Limited (ASX: OSH) and copper miner OZ Minerals Limited (ASX: OZL) won't find much reprieve from Wednesday's 2% plus losses as the West Texas Intermediate (WTI) oil price fell 0.9% to $US57.51 a barrel and copper slipped 0.3% to $US2.77 a pound.
The weakening base metal prices are also likely to put downward pressure on South32 Ltd (ASX: S32) with UK broker Liberum warning that it won't be making money at spot prices and the miner will have to rely on cost cutting to get earnings growth.
It won't only be resource stocks in the spotlight. Laboratory testing company ALS Ltd (ASX: ALQ) will be releasing its full year profit result today. The stock was the best performer on the ASX 200 Index yesterday with a 5.1% surge to $6.43.
Consumer and industrial products supplier GUD Holdings Limited (ASX: GUD) and explosives maker Orica Ltd (ASX: ORI) are expected to weigh on the market today.
GUD is looking toppy as it trades around a four-year high and was downgraded to a "hold" from "buy" by WilsonHTM, while Orica trades without its dividend entitlement today.
On the flipside, QBE Insurance Group Ltd (ASX: QBE) could enjoy some buying support after Stardard & Poor's upgraded the insurer's credit outlook to "stable" from "negative".
If we are to finish in the black today, we will need financials and healthcare stocks to do the heavy lifting.
Let the fun begin!
