The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade higher today despite mixed leads from international markets overnight.
Here's a recap:
- Dow Jones (USA): up 0.40%
- NASDAQ (USA): down 0.19%
- FTSE 100 (UK): down 0.27%
- DAX (Germany): down 0.46%
- CAC 40 (France): down 0.32%
In Europe, markets ended lower despite a rise in commodity prices. Overnight, brent crude rose 4.4%, while iron ore surged 18.5% to $US63.74 a tonne. FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) finished up 2.6% and 3.2%, respectively.
In the United States, a 1.6% and 2.2% rally in the energy and materials sectors, respectively, wasn't enough to offset a decline in the technology sector. Facebook Inc and Alphabet Inc (formerly Google) both closed more than 2% lower.
Closer to home, the Sydney Futures Exchange is tipping a 32-point, or 0.6%, rise in the S&P/ASX 200.
Shares of BHP Billiton and Rio Tinto will be in focus. Also, shares of fellow iron ore producers such as Fortescue Metals Group Limited (ASX: FMG) will be watched closed today following the rally in prices overnight. Yesterday, Fortescue's share price rose an enormous 23%. This morning, it announced a memorandum of understanding with Brazil's Vale SA to pursue long-term opportunities in China.
With oil futures up again overnight, energy shares like Woodside Petroleum Limited (ASX: WPL), Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be worth watching closely.
In an announcement to the ASX, FONTERRA ORD UNIT (ASX: FSF) lowered its forecast Farmgate Milk Price for the 2015/2016 season from $4.15 per kilogram milk solid to $3.90 per kilogram milk solid.
Finally, in broker news analysts at JPMorgan have cut their Mesoblast Limited (ASX: MSB) recommendation from overweight to neutral, according to Dow Jones Newswires.
