Resource stocks could help the market keep its head above water today in what could otherwise be a listless trading session.
The futures market is pointing to a 0.1% decline in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) as European shares fell on thin trade and the US market was closed for a public holiday.
However, commodities enjoyed broad gains with iron ore rallying for a third day as it jumped 2% to $US61.18 a tonne, while copper advanced 0.6% to$US2.83 a pound and the West Texas Intermediate (WTI) crude oil price inched up 0.2% to $US59.82 a barrel.
This bodes well for the mining and energy giants but it's iron ore producer Fortescue Metals Group Limited (ASX: FMG) that will be hogging the spotlight after the Australian Financial Review reported that Chinese buyers are lining up for a possible takeover of the struggling miner.
This development comes a day after news that foreign entities had applied to the Australian Foreign Investment Review Board for permission to buy iron ore assets.
Miner Independence Group NL (ASX: IGO) may come under further pressure following its 12% plunge yesterday after it announced a $1.8 billion takeover bid for Sirius Resources N.L. (ASX: SIR). Credit Suisse cut Independence Group to "neutral" from "outperform", while Sirius was downgraded by RBC Capital to "sector perform" from "outperform".
I am hoping Independence Group will fall further as it would represent a good opportunity to buy a quality miner.
A handful of companies will be handing in their earnings report cards today.
Pokies machine maker Aristocrat Leisure Limited (ASX: ALL) is expected to report its first-half profit today and investors will be keen to see if it can build on its 20% rise since January.
Online money transfer company Ozforex Group Ltd (ASX: OFX) will report its full year numbers and information technology services firm Technology One Limited (ASX: TNE) announced a 10% drop in net profit for the six months to end March, 2015.
Finally, hearing implant maker Cochlear Limited (ASX: COH) has announced a changing of the guard, with its highly respected chief executive Chris Roberts handing over the reins to Chris Smith on September 1, while Tap Oil Limited (ASX: TAP) will be holding its annual general meeting today.
