The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade higher again today following positive leads from international markets.
Here’s a recap:
- FTSE 100 (UK): up 3.58%
- DAX (Germany): up 1.75%
- CAC 40 (France): up 2.60%
- Dow Jones (USA): up 1.64%
- NASDAQ (USA): up 1.86%
In London, shares continued to rally with the FTSE 100 now trading higher than it was at the close on the evening before Brexit. The London-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also rallied, rising 3.2% each, suggesting today could be a good day for their local counterparts.
Meanwhile, other share markets across Europe and the United States also continued to rebound after Friday’s vicious sell-off, with investors snapping up some bargains and appearing increasingly willing to assume more risk.
Closer to home, the Sydney Futures Exchange is pointing to a 73-point gain at the open, resembling a rise of roughly 1.4%.
Considering the strength of the European markets, shares of businesses such as CYBG PLC CDI 1:1 (ASX: CYB) – or Clydesdale Bank – as well as Henderson Group plc (ASX: HGG) and BT Investment Management Ltd (ASX: BTT) could also be in for a good day.
These three businesses were sold off heavily in the aftermath of Britain’s vote to leave the European Union, but showed signs of resilience yesterday.
Kathmandu Holdings Ltd (ASX: KMD) will also be in focus after it upgraded its full-year earnings guidance. It attributed a better-than-expected gross margin to product newness and promotional activity and expects net profit to be between $32 million and $35 million, compared to previous guidance of $30.2 million as of March (figures in NZ$).
Investors will hope for further gains from businesses such as Burson Group Ltd (ASX: BAP) and Somnomed Limited (ASX: SOM) today. Both companies possess growth and defensive qualities, which is typically sought after in times of heightened uncertainty, with both shares hitting fresh all-time highs yesterday.
Finally, Vocus Communications Limited (ASX: VOC) shares will remain in a trading halt today pending a capital raising, with the shares not expected to reopen for normal trade until Monday.