Positive shares offset by weaker commodities
Day traders face a particular challenge today as positive moves in European and US share markets are offset by further falls in oil and industrial metal prices. The picture is further muddied by mixed US data and rising gold and silver prices. Throw in reports from 17 of the top 200 Australian companies and the finishing point for the index today is a tough call. Good luck traders.
Yesterday’s soggy performance from energy stocks in particular may mean some of the overnight pressure on oil prices is reflected in current prices, although previous strength in some miners may reverse today. Banks remain a key focus for the market, and the strength in CBA on the first day of trading yesterday adds a positive tone. However, CBA will trade ex-dividend today. The $2.22 dividend and weakness could sour sentiment despite the purely technical nature of the share price fall.
Results could add a negative note to trading. Already Ainsworth, QBE, Challenger, Dick Smith and Asciano have reported below consensus forecasts, with only property groups GPT and Shopping Centres Australia beating their respective marks. Minutes from the recent RBA meeting are released, and motor vehicle sales may inform the broader economic environment.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Today, European and US share markets are showing positive movements, which is a good sign for investors looking at international markets.
Falling oil and industrial metal prices are creating challenges for day traders as they offset the positive moves in share markets, potentially affecting energy and mining stocks negatively.
Energy stocks are crucial because their performance can reflect broader market trends, especially when oil prices fluctuate. Recent soggy performances in energy stocks may indicate pressure from falling oil prices.
Banks are a key focus for the market, with the strength of institutions like CBA adding a positive tone. However, trading ex-dividend can affect sentiment due to technical share price falls.
Recently, companies like Ainsworth, QBE, Challenger, Dick Smith, and Asciano have reported results below consensus forecasts, which could add a negative note to trading.
Yes, property groups such as GPT and Shopping Centres Australia have beaten their respective market expectations, providing a positive outlook in the property sector.
The release of the RBA meeting minutes could provide insights into economic policy and influence market sentiment, potentially impacting trading decisions.
Investors should keep an eye on motor vehicle sales data, as it may inform the broader economic environment and influence market trends.
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