Welcome to Tuesday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200(Index: ^AXJO) (ASX: XJO) has posted a 0.6% rise following leads from US markets.Wall Street soared again overnight, with the Dow Jones gaining 1.1%, the broader S&P 500 1.3% and the tech-heavy NASDAQ 0.9%.
The Australian dollar is up slightly against the US dollar and is currently buying 78.0 US cents.
- All eyes will be on the RBA today at 2.30pm AEST, with markets pricing in the odds of a rate cut today in an effort to strengthen the economy and boost consumer confidence.On the other hand, many economists and commentators are in the 'rates on hold' camp, with the RBA likely to signal rate cut potential in the minutes of the RBA's board meeting. Here's our view.
- Oil and iron ore prices recovered somewhat overnight. Brent oil gained 3.1% to US$54.62 per barrel while iron ore added 0.4% to US$62.45 per tonne. As a result, oil stocks and iron ore miners are gaining ground today.Santos Ltd (ASX: STO) is leading the way in the Top 20, rising 3.6% to $8.29, while Origin Energy Ltd (ASX: ORG), BHP Billiton Limited (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL) following Santos higher.
- Tweet of the Day
ANZ's hybrid still too expensive–my AFR analysis now online… https://t.co/xzgtCmn5tO
christopher joye (@cjoye) February 2, 2015Beware of bank hybrid securities – they are not what they seem.
- Stock of the Day– brought to you by Ry Padarath – BHP Billiton Limited (ASX: BHP). The giant miner's dividend payout policy is under threat. Find out more here.
