Falls in commodity prices are offsetting modest gains in global markets, and the mix will prompt investors here to sit on their hands in morning trade.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is forecast to inch up 0.1% in early trade and that may not be a bad outcome if the index closes flat given that it will chalk up a pleasing 2.1% gain for the week.
The month of July has been kind to investors as well with our market poised to deliver a 3.9% gain ahead of the official start of the reporting season next week.
A handful of companies have already handed in their earnings report card and sleep disorder treatment device maker ResMed Inc. (CHESS) (ASX:RMD) is the latest to report. ResMed's fourth quarter earnings per share of 68 cents is ahead of consensus and the company announced it was buying Curative Medical.
UK-fund manager Henderson Group plc (ASX: HGG) will also be in the earnings spotlight after it posted a 29% increase in underlying pre-tax profit to £117.4 million after the market closed yesterday and said that assets under management rose 10% to £82.1 billion. It's UK-listed shares jumped 2.5% last night.
A number of resource companies will also release their quarterly production numbers today and shareholders will be hoping for pleasing results to counter the fall in commodity prices overnight with iron ore breaking its four-day winning streak to fall 0.5% to $US55.64 a tonne and copper giving up 1.3% to $US5,260 a tonne.
Atlas Iron Limited (ASX: AGO) is expected to post its June quarter production and that will be closely watched as the iron ore junior has recently emerged from a major restructure to lower operating costs to keep it alive in the wake of the collapse in the commodity.
Integrated energy company Origin Energy Ltd (ASX: ORG) will release its quarterly result as well, while gold miner Regis Resources Limited (ASX: RRL) will also be in focus after it posted its quarterly and forecasting gold production of between 275,000 and 305,000 ounces for 2015-16 from its Duketon project.
Mining services company Monadelphous Group Limited (ASX: MND) could attract some buying support after management announced that it has won contracts worth $130 million. The amount is not material to the group, which is forecast to post revenue of $1.94 billion in 2014-15, but could bolster confidence towards its pipeline of work.
In other corporate news, blood products maker CSL Limited (ASX:CSL) said it has secured the necessary approvals to proceed with its $US275 million acquisition of Norvartis flu vaccines business, while gold miner OceanaGold Corporation (ASX: OGC) announced it will buy Romarco Minerals for around $C856 million ($903 million).