The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) lost its momentum as Tuesday's session wore on, but is tipped to rise marginally when trading opens again this morning. The Sydney Futures Exchange was pointing to a marginal 0.1% rise at around 8:00am AEDT.
Here's a quick recap on how international markets performed overnight:
- FTSE 100 (UK): down 0.25%
- DAX (Germany): up 1.07%
- CAC 40 (France): up 0.75%
- Dow Jones (USA): down 0.26%
- NASDAQ (USA): down 0.18%
The Australian dollar has swung lower with some suggesting it will fall to US74 cents in the near future. This is thanks to expectations of an interest rate hike in the United States, combined with a pullback in commodity prices.
That could bode well for shares of businesses with large international exposure, including the likes of Westfield Corp Ltd (ASX: WFD) and Cochlear Limited (ASX: COH).
In regards to commodity stocks, the gold miners could be in for a tough session after the spot gold price dropped 1% overnight. EVOLUTION FPO (ASX: EVN) and Silver Lake Resources Limited. (ASX: SLR) were particularly strong on Tuesday and could reverse some of those gains today.
Brent oil also dropped 1.6% which could weigh on companies such as Santos Ltd (ASX: STO) and BHP Billiton Limited (ASX: BHP). BHP's London-listed shares fell 3% overnight while Rio Tinto Limited's (ASX: RIO) London shares fell 4.1%.
Woolworths limited (ASX: WOW) shares fell on Tuesday as well, and could be in for another tough session.
The retailer's shares rose strongly last week but have lost some momentum as a result of potential delays in the sale of its Masters home improvement business, together with comments from management that suggest an increase in same-store-sales growth may not result in higher earnings right away.
As we approach the end of earnings season, corporate results are now hitting the market at a slow trickle. However, Independence Group NL (ASX: IGO) will release its annual results today, together with Adelaide Brighton Ltd. (ASX: ABC).
According to The Australian Financial Review, Harvey Norman Holdings Limited (ASX: HVN) is also expected to report today. Following the reports issued by JB Hi-Fi Limited (ASX: JBH), Kogan.com Ltd (ASX: KGN) and Nick Scali Limited (ASX: NCK) recently, investors will hope for another strong report.
