Looking for a clear direction for our market? Today isn't one of those days and this is likely to leave stocks more vulnerable to non-company specific news.
The futures market is pricing in a flat to slightly weaker open for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on mixed offshore leads with the US S&P 500 Index inching up to fresh record highs as European equities fell on rising fears that Greece will be forced out of the European Union.
Commodities won't give many clues on how the morning trade will unfold either as most are hovering just above or below breakeven from Friday trade.
But gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are likely to continue to enjoy support as bullish sentiment towards the precious metal is likely to persist as long as the US dollar stays on the back-foot.
The opposite is probably true for iron ore producers like Fortescue Metals Group Limited (ASX: FMG), after the iron ore price fell for the fourth consecutive day. The Metal Bulletin ore price lost 1.6% to $US61.31 a tonne.
Fortescue's chairman is also reported to be taking a stake in its smaller rival Atlas Iron Limited (ASX: AGO). Atlas looks like it can be rescued after the stock went into a trading halt as the miner underwent a restructure in the face of the iron ore price collapse.
But this time round, the falling iron ore price could put more pressure on the almighty majors BHP Billion Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO), as the federal government looks increasingly likely to launch a parliamentary enquiry into whether the miners acted irrationally.
This political risk is not priced into the stocks.
BHP Billiton will also be in focus as its spin-off South32 Ltd (ASX: S32) makes its market debut at noon today, as it trades on a deferred settlement basis. Its performance is likely to set the tone for the market close.
Rio Tinto is looking to make divestments of its own as it tries to sell its aluminum assets again. Second time lucky?
Investors will also be keenly watching paint company DuluxGroup Limited (ASX: DLX) to see if the stock can continue on its winning run. The company announced its first half result this morning and the stock is up nearly 13% since the start of the calendar year.
On the deal-making front, wealth managers are again in the spotlight. AMP Limited (ASX: AMP) is said to be leading a group to buy UK train leasing company Angel Trains, reported the Times, while Henderson Group plc (ASX: HGG) is in talks to buy some of IOOF Holdings Limited's (ASX: IFL) businesses.
We also know that Equity Trustees Ltd (ASX: EQT) is on the prowl after it was revealed that it has made an approach to buy out Diversa Limited (ASX: DVA).
Finally, investment bank Macquarie Group Ltd (ASX: MQG) will put downward pressure on the market as the stock goes ex-dividend – meaning it is trading without its dividend entitlement, and disinfection device maker Nanosonics Ltd. (ASX: NAN) is likely to get a boost on news that its device can kill cancer causing HPV.
