Game Changer

Weaker US jobs numbers have deferred expectations of interest rate rises, leading to positive moves in international shares and higher commodity prices. This is setting the stage for further gains for Australian investors.

Energy stocks are gaining attention due to strong support for the sector, driven by speculation that Russia may join other producers for trade talks, which is supporting oil prices. This could signal a shift in Energy's status as the least favored sector.

International commodity prices are positively impacting Australian materials stocks, as seen with Glencore trading above pre-sell off levels. This suggests that previous comparisons to Lehman Brothers were economically illiterate.

The Reserve Bank of Australia is almost universally expected to leave interest rates on hold at their upcoming meeting. Investors will be closely watching the statement for any clues on the international economic outlook.

Futures markets are indicating an opening 3% higher than Friday’s close, reflecting optimism from the recent economic developments, including weaker US jobs numbers and positive moves in international shares.

The international outlook is crucial for the Reserve Bank of Australia's decisions, as global conditions have previously derailed the Federal Reserve's intended moves. Investors are keen to see how these factors influence the RBA's stance.

Speculation about Russia joining trade talks with other oil producers is driven by the potential for collaborative efforts to support oil prices, which could benefit the energy sector and investors interested in energy stocks.

The comparison of Glencore to Lehman Brothers is seen as a product of economic illiteracy, as Glencore's trading above pre-sell off levels suggests a more stable outlook for materials stocks, offering reassurance to investors.