AUSTRALIAN shares are tipped to open higher this morning, in the last week of profit reporting season, after US and European stocks rallied on Friday.
Futures trading indicated the benchmark ASX200 index would open 25 points higher at 4357 points, following a 0.7 per cent gain on Wall Street on Friday. European markets were also mostly higher.
However, analysts said a positive opening this morning would not be a certainty because the dual-listed global miners BHP Billiton and Rio Tinto had lost about 1.5 per cent in value in London trade late on Friday.
The falls came after BHP last week decided to shelve the massive Olympic Dam mine expansion in South Australia, a decision that had some market commentators declaring the end of the mining boom.
Investors' focus will be on the final week of the profit reporting season. Caltex, Toll Holdings and Billabong report today.
So far, earnings season has been surprisingly positive, with 33 per cent of the profit results better than the market had expected, and 16 per cent worse than expected.
Economic news this week includes the release of June quarter construction activity figures on Wednesday, and capital expenditure on Thursday. The latter will provide an insight into whether mining activity has slowed.