Overnight, US and European markets traded higher on the back of a rebound in the energy and resources sectors. US shares extended a 10-week rally, with the Dow Jones climbing 0.7%.
European shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) rose 3.2% and 1.1%, respectively, despite a 0.8% fall in iron ore prices and a 1.4% fall in spot gold prices.
Closer to home, the S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) is expected to be buoyed by the 2.5% jump in Crude oil futures. Shares of Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO), Origin Energy Limited (ASX: ORG) and Oil Search Limited (ASX: OSH) have come under heavy selling pressure in recent times thanks to sharp falls in global oil prices.
Ahead of the Commonwealth Bank of Australia's (ASX: CBA) third quarter trading update tomorrow, investors will be closely watching the Big Four banks following heavy falls over the past week.
Meanwhile, Deutsche Bank has maintained its 'Buy' rating on financial technology business, Iress Ltd (ASX: IRE) after a "positive" update within its UK operations, according to Fairfax.
Following a bumper half-year profit result, analysts at Credit Suisse reinstated coverage of Macquarie Group Ltd (ASX: MQG) shares giving it an outperform rating.
Also in the spotlight will be Woolworths Limited (ASX: WOW). The supermarket giant's share price has suffered in recent months. Analysts are increasingly concerned it may heavily cut its dividend to avoid suffering a credit downgrade. Standard & Poor's has already revised its outlook to negative from stable following last week's shock profit announcement.
