European and US stocks fell overnight as commodities ended mixed but Australian equities may just buck the trend as investors focus on bank earnings.
The futures market is pointing to a 0.3% rise for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open even as key European stock indices dropped around 1% and the US S&P 500 Index dipped 0.3%.
All eyes will be on National Australia Bank Ltd. (ASX: NAB) this morning as it reported a full year result that missed estimates after agreeing to sell 80% of its insurance business to Nippon Life for $2.4 billion.
NAB has also confirmed that it will delay the float of its Clydesdale Bank business until February next year. The bank's UK spin-off aims to be listed on the FTSE 250 and the ASX 100.
NAB's profit announcement comes at a time when there's growing pressure on the Big Banks from a slowing housing market and the push by regulators for the sector to hold more cash to buffer against an external shock.
But Goldman Sachs believes fear towards the banks is overblown and has been snapping up bank shares, but is bearish on iron ore producers due to rising supply of the steel making ingredient, according to Bloomberg.
The news may dampen enthusiasm towards the likes of Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) even as the commodity broke a six-session fall to bounce 0.9% to $US51.50 a tonne.
Energy stocks like Woodside Petroleum Limited (ASX: WPL) may not fare much better as the price of the West Texas Intermediate shed 1.8% to $US43.19 a barrel on worries that tomorrow's US oil inventory report will show another sharp rise, adding to the global glut.
Another stock that could come under pressure is agribusiness Graincorp Ltd (ASX: GNC) after analysts from Macquarie Group Ltd (ASX: MQG) warned that Graincorp may be "very negatively" affected by the El Nino weather phenomenon.
But it's not all bad news. There are further positive signs for retail ahead of the all-important Christmas shopping season.
Shopping center operator Federation Centres Ltd (ASX: FDC) reported a 3.2% increase in comparable specialty store sales in the September quarter that is driven by apparel retailers, while fellow mall owner Shopping Cntrs Austrls Prprty Gp Re Ltd (ASX: SCP) has upped its 2015-16 distributable earnings per share forecast to 13.5 cents.
The good news follows Harvey Norman Holdings Limited's (ASX: HVN) solid sales update yesterday that sent the stock jumping 3.1% to $3.98.
Finally, construction group Cimic Group Ltd (ASX: CIM) has also given investors something to cheer about today. The consortium that includes its subsidiary Leighton has been selected as the preferred contractor to extend the Roe Highway in Perth.
The pipeline of infrastructure construction projects is looking healthy too with the federal government agreeing to release $1.5 billion for projects in Victoria.
