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.