Any optimism from Friday's rally on Wall Street is being tempered by falls in the iron ore price and European equities with our market likely to open flat ahead of a busy reporting week.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to start the morning relatively unchanged from Friday's close of 5,356.5 but earnings reports from a handful of companies will set the tone for the rest of the trading day.
Rail freight operator Aurizon Holdings Ltd (ASX: AZJ) kicked off the day with a $604 million net profit announcement that was a little ahead of expectations but said that rail haulage in the current financial year will be flat compared with 2014-15.
Property Group Charter Hall Retail REIT (ASX: CQR) posted a 5.2% increase in full year operating earnings to $110.8 million as it lifted its dividend by 0.7% to 27.5 cents a unit, while energy provider Energy Developments Limited (ASX: ENE) turned in a 26% uplift in net profit to $57 million on the back of a 6% increase in revenue to $448.7 million for 2014-15.
Other companies that will be handing in their profit report cards today include gold miner Newcrest Mining Limited (ASX: NCM) and consumer financing solutions company FlexiGroup Limited (ASX: FXL).
Iron ore miners will also be in the spotlight after the price of the steel making ingredient fell 0.5% to $US56.74 on Friday. The good news is that the tragic explosion at the Tianjin port is not affecting shipments of the ore from BHP Billiton Limited (ASX: BHP) or Fortescue Metals Group Limited (ASX: FMG).
Shareholders in the latter will also be mulling reports that Magnitogorsk Iron & Steel Works will not sell its 5% stake in Fortescue until iron ore prices recover.
A number of companies will also trade without their dividend entitlements today. This includes casino operator Echo Entertainment Group Ltd (ASX: EGP), pet care services group Greencross Limited (ASX: GXL) and wealth manager Magellan Financial Group Ltd (ASX: MFG).
On the merger and acquisition front, listed asset managers could come under the takeover spotlight after the Australian Financial Review reported that Macquarie Group Ltd (ASX: MQG) is eyeing acquisitions in that sector.
The investment bank has also been appointed to manage the potential sale of two private equity firms' $1.7 billion stake in hospital operator Healthscope Ltd (ASX: HSO), according to the AFR. The news likely to put Healthscope's share price under pressure.
In other news, our national carrier Qantas Airways Limited (ASX: QAN) will be in focus on doubts about the survival of its joint venture Jetstar Hong Kong after Bloomberg reported that partner China Eastern Air is planning on dissolving the JV.
Jetstar Hong Kong, which is key to Qantas' Asian expansion, was unsuccessful in gaining an operating license from the Hong Kong authorities.
Finally, the 0.3% rebound in the West Texas Intermediate (WTI) crude oil price to $US42.50 a barrel could bring mild relief for Santos Ltd (ASX: STO) after the stock crashed 9% on Friday, prompting management to issue reassurances to the market that it has $2 billion in liquidity to weather the downturn in the commodity.
Unfortunately, many experts see further downside risk for the oil price.
