Australian investors are set for further gains after weaker US jobs numbers deferred expectations of interest rate rises. The game changing non-farm payrolls read spurred positive moves in international shares and higher commodity prices. Futures markets are pointing to an opening 3% higher than Friday’s close.
Energy stocks are in the spotlight after strong support for the sector overnight. Speculation that Russia may join other producers for trade talks is supporting oil prices, and Energy’s status as least favoured may be turning. Materials stocks could also find interest as international commodity house Glencore trades above pre-sell off levels, exposing comparisons with Lehman Brothers as a product of economic illiteracy.
The Reserve Bank of Australia’s board is almost universally expected to leave interest rates on hold at their meeting today. However, participants will eagerly scour the statement for clues on international outlook, given these conditions derailed the Fed’s intended moves.