Investors will likely approach the share market cautiously today ahead of the local CPI data, which will be released by the Australian Bureau of Statistics. It's expected that a weak result would force the Reserve Bank of Australia to cut interest rates when it meets next week, which could push share prices higher.
Here's a quick recap:
- FTSE 100 (UK): up 0.21%
- DAX (Germany): up 0.49%
- CAC 40 (France): up 0.15%
- Dow Jones (USA): down 0.1%
- NASDAQ (USA): up 0.24%
Given the market will be focused on the inflation data, high-yield dividend shares such as Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) will be watched closely.
If the market senses another interest rate cut, it's likely those shares would rise. On the other hand, a solid set of inflation figures could dampen the prospects of an interest rate cut which could see them fall in price.
Iron ore, oil and gold prices all experienced small rebounds overnight which bodes well for the resources sector. That could mean a better day for shares of businesses such as BHP Billiton Limited (ASX: BHP) and Newcrest Mining Limited (ASX: NCM).
Senex Energy Ltd (ASX: SXY) and Silver Lake Resources Limited. (ASX: SLR) also released their June quarterly report which will both be scoured over by investors today. Senex guided for between 0.8 million and 1 million barrels of oil equivalent (mmboe) in financial year 2017, compared to the 1.01mmboe achieved in FY16.
Meanwhile, Eclipx Group Ltd (ASX: ECX) will be in the spotlight after The AFR's Street Talk section speculated over the group's interest in ANZ Bank's plant and equipment finance business, UDC Finance Ltd.
Finally, iCar Asia Ltd (ASX: ICQ) has released its quarterly cash flow report, reporting a 45% lift in cash collections year-on-year, totalling $1.9 million, thanks to a strong performance in Thailand. Net operating cash outflow has also improved 7% compared to the same period in 2015.
