Positive offshore leads are likely to push our market higher for the fourth day on speculation that the commodities rout is coming to an end.
Not everyone will agree with the view but there were enough believers snapping up raw material stocks in Europe and the US to push those stock indices higher in overnight trade with our S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tipped to gain 0.9% in sympathy.
While commodities ended mix with the West Texas Intermediate oil price slipping 1% to $US48.04 a barrel and copper giving up a big gain in early trade to finish 0.5% higher to $US2.3660 a pound, that isn't expected to sap much enthusiasm.
We are likely to see big gains for mining giants Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) as their US-listed stocks surged. Rio Tinto recorded its biggest rise in a year of 7.8%, while BHP advanced for the seventh consecutive trading day as it added 4.2%.
A few bullish broker reports are bolstering sentiment too. Deutsche Bank is predicting that some of the headwinds holding back the copper price will dissipate in the December quarter, while Morgan Stanley is urging investors to increase their exposure to commodities due to attractive valuations and more stable economic data from China.
Morgan Stanley has also upgraded BHP and Rio Tinto to "overweigh" from "equal weight". As I mentioned in this column yesterday, I believe commodities will run higher right through to February next year as investors push back expectations of a US rate hike into 2016. Just don't expect volatility to ease.
But there's lots happening outside of resources too. Bank of Queensland Limited (ASX: BOQ) will be in the spotlight as it hands in its full year results. Coincidentally, a number of bank stocks, including Bank of Queensland, are tipped to outperform in the near-term according to Macquarie Group Ltd (ASX: MQG).
Meanwhile, online jobs website SEEK Limited (ASX: SEK) and protective rubber products maker Ansell Limited (ASX: ANN) will also come into focus. SEEK is looking to fast track the spin-off of its IDP Education Australia business, according to The Australian, while Ansell will front shareholders at its annual general meeting today.
It could be an uncomfortable AGM as shareholders won't be in a good mood after watching Ansell's share price collapse close to 40% in the past six months. You can read about why here.
Investors will also be mulling the Asian expansion strategy outlined by general insurer Insurance Australia Group Ltd's (ASX: IAG) new chief executive who told the Australian Financial Review that the regional expansion is a priority.
There will be mixed views on this given that Australian finance companies have a patchy track record when it comes to expanding in Asia. Australia and New Zealand Banking Group (ASX: ANZ) is one example that comes to mind.
Finally, today is the last day you can buy telecommunications services company TPG Telecom Ltd (ASX: TPM) for its fully franked 6 cents a share dividend as the stock trades ex-div tomorrow.
