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.

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.

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