Our market is likely to claw back some of yesterday's steep losses as a key US stock index jumped to its highest level in two weeks on the back of better than expected retail sales figures in the world's largest economy.
Investors here will take heart that the impact of the waning Chinese economy doesn't appear to be spilling over with the S&P 500 jumping 1.3% in overnight trade as European stocks also rallied in sympathy.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to open 0.8% higher but investors should brace for more volatility as most market participants will be reluctant to do anything ahead of the US interest rate decision on Friday night Australian time.
Oil and gas stocks like Woodside Petroleum Limited (ASX: WPL) could catch a break with the West Texas Intermediate oil price gaining 1.3% to $US44.59 a barrel, although investors will probably be distracted by its takeover tussle for Oil Search Limited (ASX: OSH) as the fight is turning nastier.
Woodside is bypassing Oil Search's board and making its takeover pitch directly to the target's shareholders, according to the Australian Financial Review. Oil Search had rejected Woodside's offer outright.
However, mining stocks may be lagging the market today as the price of most other commodities fell on a firmer US dollar. Iron ore dropped 1.4% to $US57.28 a tonne, copper shed 0.7% to $US2.3885 a pound and gold slipped 0.6% to $US1101.50 an ounce.
On the other hand, there is a growing view among some experts that investors should buy the major miners on any weakness.
Media stocks like Nine Entertainment Co Holdings Ltd (ASX: NEC) and Fairfax Media Limited (ASX: FXJ) will also be in the spotlight after former communications minister Malcolm Turnbull became Australia's 29th Prime Minister. He is expected to relax cross-media ownership laws that could spark a consolidation in the sector.
In other news, National Storage REIT (ASX: NSR) announced a deal to acquire a 5,400 square meter self-storage asset in New Zealand for $NZ7.4 million ($6.6 million), while trading systems provider Iress Ltd (ASX: IRE) said it will pay £37.6 million ($80.9 million) for two UK-businesses in a deal that is forecast to be earnings per share accretive in 2016.
Blood products maker CSL Limited (ASX: CSL) could also enjoy buying support today. An advisory panel to the US Food and Drug Administration (FDA) is backing CSL's Fluad adjuvanted flu vaccine. While the panel's findings don't guarantee FDA approval for the drug, the FDA often leans towards the recommendation of its advisory panel.
Finally, today is the last day investors can buy BlueScope Steel Limited (ASX: BSL) for its fully franked 3 cents a share dividend as the stock trades ex-div tomorrow.
