Share markets in the United States were closed overnight for Independence Day, but markets across Europe cooled following a post-Brexit rally.
Here's a recap:
- FTSE 100 (UK): down 0.84%
- DAX (Germany): down 0.69%
- CAC 40 (France): down 0.91%
- Dow Jones (USA): Closed for Independence Day
- NASDAQ (USA): Closed for Independence Day
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks set to follow those markets lower when it opens at 10:00am AEST.
The Sydney Futures Exchange is pointing to a 13 point or 0.2% decline at the time of writing as investors await the Reserve Bank of Australia's decision on interest rates. Meanwhile, ongoing uncertainty regarding the weekend's inconclusive federal election results could continue to weigh on investor sentiment.
With the RBA set to announce its decision at 2:30pm today, Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and other companies offering solid, fully franked dividends could be in focus.
While an interest rate cut would likely push their share prices higher in the afternoon, even an RBA switch to an "easing bias" could be enough to push dividend shares higher.
Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) will be looked at again after the iron ore price soared 3.5% overnight, according to The Metal Bulletin.
Shareholders of Fortescue Metals Group Limited (ASX: FMG) will also hope for more gains after their shares soared 7.2% on Monday.
Outsourced administration and vehicle services group Smartgroup Corporation Ltd (ASX: SIQ) announced a new acquisition after the market closed on Monday, and could be looked at by investors.
Meanwhile, lithium hopeful Kingston Resources Ltd (ASX: KSN) has announced it will proceed with a second Tranche Capital raising to assist it with a new exploration program. Shares across the sector have skyrocketed this year, so investors will likely take a closer look at that announcement as well.
In broker news, Morgans has cut its price target on Wesfarmers Ltd (ASX: WES) shares by 4.4% to $39.85. Deutsche Bank also raised its target price on Amcor Limited (ASX: AMC) during yesterday's session by 1.4% to $14.45.
