Big Australia
Weaker commodity prices and a disappointing result from the world’s largest listed mining company could see Australian shares under pressure at the open today, although a fall in the Australian dollar overnight may bring international support. Local factors will be highly influential as another twenty top tier companies release reports.
A cautious approach by management saw BHP’s reported profit missing expectations. Underlying operating profits were better than expected, but U$938 million in write downs meant the headline number fell short of consensus by about U$400 million. Falls in copper and gold overnight may increase selling interest, and an overnight tumble in oil prices may take the gloss off Oilsearch’s 72% profit increase and special dividend of 4 cents per shares.
Other reports include Ainsworth Gaming, Breville, Qube, Flight Centre and QBE on what will be another busy day for analysts.
Volumes could be dampened by upcoming events. The heads the US Fed and the ECB will both speak tonight. Traders will examine Draghi’s statements for any further ratcheting up of the imminent stimulus program, and Yellen’s for any signs that recent soft US data has pushed back the tightening timetable.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Weaker commodity prices could put pressure on Australian shares, especially if major companies like BHP report disappointing results. This could lead to increased selling interest in the market.
BHP's recent financial report showed a profit that missed expectations due to significant write-downs, which could negatively impact its stock performance as investors react to the news.
A fall in the Australian dollar can attract international investors, as it makes Australian assets more affordable and potentially more attractive compared to other markets.
Falling copper and gold prices may increase selling interest among investors, as these commodities are key indicators of economic health and can influence the profitability of mining companies.
Despite Oilsearch's 72% profit increase and special dividend, the recent drop in oil prices could dampen investor enthusiasm and affect the stock's performance negatively.
Investors should look for key financial metrics and any forward-looking statements in the reports from companies like Ainsworth Gaming and Breville, as these can provide insights into their future performance and market conditions.
Speeches by the US Fed and ECB are crucial as they may provide insights into future monetary policy, which can influence global markets and investment strategies. Investors will be particularly interested in any hints about stimulus programs or interest rate changes.
Investors can contact Michael McCarthy at CMC Markets for further insights by calling 02 8221 2135.
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