On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) opened the week with a 0.2% push higher to 6,286 points following a strong finish to last week on Wall Street.
Will the local market be able to continue its run on Tuesday? Here are five things that could shape the day ahead:
Australian share market expected to open higher.
The local share market is poised to open the day higher on Tuesday. According to the latest SPI futures, the S&P/ASX 200 is expected to start the day 0.4% or 24 points higher. This follows another positive night of trade on Wall Street which saw the Dow Jones Industrial Average rise 1.3%, the S&P 500 climb 0.9%, and the NASDAQ also push 0.9% higher.
NAB Business survey release.
The latest business survey out of National Australia Bank Ltd (ASX: NAB) will be released this morning. Last month’s release found that business conditions decreased 6pts to +15 index points in May, easing back from historical highs seen in the previous month. Despite the easing, the survey indicated that business conditions remained favourable in Australia. More of the same is expected from today’s release for the month of June.
Michael Hill trading update.
The Michael Hill International Ltd (ASX: MHJ) share price will be on watch today after the jewellery retailer released a trading update after the market closed on Monday. For the 12 months ending June 30, Michael Hill saw its unaudited revenue increase 3.3% to $599.7 million. Company-wide same store sales grew by 0.4% during the period thanks to strong performances in Canada and New Zealand. However, same store sales declined in Australia.
Villa World updates guidance.
Another share to make a release after the market closed was Villa World Ltd (ASX: VLW). The residential property developer released an update to its guidance for FY 2018. Previously the company had been targeting net profit after tax of $41.6 million, but this has been upgraded to be in the range of $42 million to $44 million. This includes a $2.6 million contribution from the recent strategic sale of an Englobo parcel.
Sydney Airport monopoly concerns.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be on watch after the Productivity Commission warned that it will investigate whether Australian airports are operating as monopolies. According to the AFR, there are concerns that airport operators may use their market power to maximise profits through excessive charges and by providing fewer services.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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