The local market is expected to open sharply higher today, following strong leads from US and European markets overnight.
In the US, a higher dollar was blamed for the softest manufacturing data in around three years. However, during October, US shares notched up their best monthly gains in four years and showed no signs of slowing on the first day of November.
In Asia, weaker-than-expected PMI data out of China for the third straight month saw Japan's Nikkei 225 fall 2.1% and the Shanghai Composite drop 1.7%.
Nonetheless, the local S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) is expected to climb 1.2% today after heavy losses across the board yesterday. Analysts and economists alike will be listening out for the RBA's official interest rate decision this afternoon, with Australia's major bank economists expecting the cash rate to be held at 2%.
Slight falls in Brent Crude oil and iron ore prices saw European shares of Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) close Monday's trading session lower. At $US48.76 a barrel, lower crude oil prices could weigh on energy stocks such as Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO).
Fairfax Press reports Origin Energy Ltd (ASX: ORG) shares have been given a price target of $7.50 and buy rating by analysts at Deutsche Bank. This follows an 8% cut to Goldman Sachs' price target on the stock last week.
Investors will be closely watching the grocery sector following share price falls of between 7% and 14% for the industry's biggest names, such as Wesfarmers Ltd (ASX: WES), Metcash Limited (ASX: MTS) and Woolworths Limited (ASX: WOW), over the past three trading days.
Asciano Ltd (ASX: AIO) shares will also be in focus after announcing it is, "considering the implications" of Qube Holdings Ltd's (ASX: QUB) decision to buy 20% of its shares, to potentially block the recommended takeover from Brookfield Infrastructure Partners.
