The resources sector should be supported today on firmer commodity prices as the broader market marks time ahead of the US interest rate decision.
The futures market is pricing in a flat trading day for the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) even as the S&P 500 US stock index registered a 0.3% rise a day before the US Federal Reserve announces its rate call.
But there will be plenty to keep investors busy today with the price of iron ore advancing 1.3% to $US58.88 a tonne. This is its fifth consecutive day of gains and its longest winning streak this year.
The usual suspects – such as Rio Tinto Limited (ASX: RIO), BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) – are likely to find buying support even though iron ore stocks ended deep in the red yesterday.
However, gold stocks outperformed on Tuesday and should continue to rise today as the gold price made its second day of gains as it added 0.9% to $US1,214 an ounce.
Further, we can expect a pickup in merger & acquisition activity in the sector.
Newcrest Mining Limited (ASX: NCM) jumped 3.6% to a one-year high of $14.84 yesterday, while Northern Star Resources Ltd (ASX: NST) and Perseus Mining Limited (ASX: PRU) surged over 5% each to $2.20 and 38.5 cents, respectively.
The financial sector will also be in the spotlight today for a number of reasons. Australia and New Zealand Banking Group (ASX: ANZ) is reported to be delaying the sale of its Esanda business for a month as it considers if it should divest more loans from the entity, according to The Australian.
Fund manager BT Investment Management Ltd (ASX: BTT) is expected to release its first half earnings, while Platinum Asset Management Limited (ASX: PTM) has been downgraded to "hold" from "buy" by Morningstar after its close to 20% rally over the past six months.
UK-based wealth manager Henderson Group plc (ASX: HGG) reported record fund inflows for the March quarter, after the market closed yesterday and said it would sell its TH Real Estate stake for £80 million.
Companies that are scheduled to release their quarterlies include oil & gas companies Senex Energy Ltd (ASX:SXY) and AWE Limited (ASX: AWE), and retail and coal conglomerate Wesfarmers Ltd (ASX: WES).
On the corporate deal front, document management company Recall Holdings Ltd (ASX: REC) is set to surge after US-based Iron Mountain has increased its offer for the company, while The Australian reports that Tabcorp Holdings Limited (ASX: TAH) is mulling a deal to buy Tattersall's wagering arm UBET.
Meanwhile, Seven West Media Ltd (ASX: SWM) has gone into a trading halt this morning to undertake a capital raising. It is expected to resume trading tomorrow.
