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Australia shares are set for gains at the open today as investors and traders play catch up following yesterday’s holiday affected trading. The index fell yesterday, despite Friday’s stronger US jobs numbers and a consequently lower AUD. A mooted deal between Glencore and Rio, and firmer commodity prices – with the exception of iron ore – may also support shares today.
Futures markets are pointing to lift of around 20 points. Major banks and miners are showing strength in pre-match indications, as is Crown, despite a ban on smoking in Macau casinos coming into effect this week. Rio shares were up more than 1.5% in London trading following media reports that the chairman of global mining and investing group Glencore was sounding out Rio’s major shareholder Chinalco about a merger deal. Bounces in oil and copper prices may add to a more optimistic trading environment.
The RBA will make a statement following its monthly meeting today. No change is expected in interest rates, or the outlook for an “extended period of stability”. The likely focus for markets is any rhetoric around housing prices and the level of the AUD. For shares, today’s meeting is a hurdle to clear rather than a potential game-changer.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Australian shares are set for gains as investors catch up after a holiday-affected trading day. The market is expected to open higher, supported by stronger US jobs numbers and firmer commodity prices.
Rio Tinto shares have shown positive movement, rising more than 1.5% in London trading. This increase follows reports of a potential merger deal with Glencore, which has sparked investor interest.
Commodity prices, particularly oil and copper, are contributing to a more optimistic trading environment. However, iron ore prices remain an exception, not showing the same upward trend.
Yes, there are media reports suggesting that Glencore's chairman is exploring a merger deal with Rio Tinto's major shareholder, Chinalco. This potential deal is drawing attention from investors.
The Reserve Bank of Australia is expected to maintain interest rates at their current level, with an outlook for an extended period of stability. The focus is more on housing prices and the Australian dollar's level.
Major banks and miners are showing strength in pre-market indications, suggesting a positive start to the trading day. This is likely influenced by the overall optimistic market sentiment.
External factors such as stronger US jobs numbers, a lower Australian dollar, and firmer commodity prices are influencing the Australian stock market positively today.
Investors should pay attention to any comments on housing prices and the Australian dollar in the RBA's statement, as these could impact market sentiment and trading decisions.
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