Australian equities are expected to jump to a five-week high this morning as global stock and commodity markets surged on the expectations that US interest rates will stay at a record low for the rest of the year.
There's nothing like cheap money to fuel risk assets and the weaker-than-expected US jobs data last week has cemented the view that US central bankers will have no choice but to keep rates at close to zero until sometime in 2016.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to climb 1.4% in early trade and I suspect all sectors will join in the rally, although energy stocks like Santos Ltd (ASX: STO) could do particularly well with the Brent oil price jumping 2.5% to $US49.32 a barrel.
Reports that Russia has finally agreed to meet with other oil producing nations to talk about potential supply controls to support the market spurred the overnight gains, although the weaker US dollar didn't hurt either.
But its Origin Energy Ltd (ASX: ORG) that will likely take centre stage in the sector as the stock is expected to emerge from its trading halt after its heavily discounted $2.5 billion capital raising.
Macro-economic news will also be a big driver of the market today. The historic trade deal signed by 12 Pacific Rim nations, including Australia, will give investors a reason to cheer as it is expected to bolster the services industry.
The Reserve Bank of Australia (RBA) will be in the spotlight too as it prepares to hand down its interest rate decision at 2.30pm. It is widely expected that rates will be on hold but it's the accompanying statement that the market will be scrutinizing for hints on the timing of the RBA's next move.
Australia's trade data at 11.30am will give investors something else to chew on. The August trade deficit is forecast to come in at $2.4 billion.
Meanwhile, investors will be eyeing Macquarie Group Ltd (ASX: MQG) as the investment bank is seen as the favorite to win the bidding war for Australia and New Zealand Banking Group's (ASX: ANZ) auto finance business Esanda. The news could be released as early as today, according to the Australian Financial Review.
Information technology consultancy UXC Limited (ASX: UXC) will also be in focus after management said it received a $1.26 bid for the company from US-listed Computer Sciences Corporation.
Under the proposal, shareholders will get an additional 2 cents fully franked dividend, although that will still put the total offer below UXC's last closing price of $1.33.
Asian property website iProperty Group Ltd (ASX: IPP) is another to watch. The group reported a two-third increase in cash collections to $8.6 million in the September quarter compared to the same time last year.
However, recommendation downgrades will put a few stocks under the pump today. Paint supplier DuluxGroup Limited (ASX: DLX) could come under pressure after Morgan Stanley cut the stock to "underweight" from "equal weight", while agri-business Graincorp Ltd (ASX: GNC) was lowered to "neutral" from "outperform" by Credit Suisse.
Finally, today is the last day you can buy four-wheel drive accessory supplier ARB Corporation Limited (ASX: ARB), aged-care facilities owner Japara Healthcare Ltd (ASX: JHC) and retail group Premier Investments Limited (ASX: PMV) for their fully franked dividends as the stocks trade ex-div tomorrow.
ARB will pay 16 cents a share, while Japara and Premier will reward shareholders with a 5.5 cents and 21 cents a share payout.
