Australian shares are modestly up this morning heading into Tuesday open, with ASX 200 futures pointing to a 0.41% gain – and things may stay quite mellow on the bourse until we hear from the RBA later this afternoon.
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The general consensus has become that Oz’s central bank will trim rates today.
Low unemployment, a returning spike in customer spending, and high U.S. inflation could all still spoil the rate cut party come 2.30pm in Sydney though.
Should there be a cut announced, it would be the first time in more than four years that Australia’s central bank has brought things down. The last time there was a trim was before the COVID-19 lockdowns had even started in 2020.
The stock exchange Down Under has been flying without its oft-guiding light too, with the U.S. markets closed for President’s Day; futures on Wall Street are up 0.2%.
Other global factors will be weighing on investors up to the RBA decision too though, including EU President Ursula von der Leyen’s call for “a surge in defence” and the U.S.-Russian meeting regarding the war against Ukraine.
So too will reporting season: Major mining names like Mineral Resources (ASX:MIN) and BHP (ASX:BHP) will take shareholders under the hood today.
Also on the docket is Challenger (ASX:CGF), which spruiked a 12% increase in net profit.
Elsewhere, Aurizon Holdings (ASX:AZJ) is again considering a break-up in its company that would see its rail haulage and trail tracks businesses divided. The Brisbane company would only make the move if its earnings keep dropping.
Perpetual Limited (ASX:PPT) has received a sweetened offer from Kohlberg Kravis Roberts this week too – more franking credits would take the bid to $11 a share.
Looking at forex, the Aussie dollar is buying 63.6 US cents.
To commodities, which are in the greenback,
Iron Ore sagged 0.33% to $105.80 a tonne in Singapore,
Brent Crude is trading at $75.20,
Gold is trading at $2,911 per ounce, and,
US natgas futures tanked 3.3% overnight to sell at $3.60 per gigajoule.
That’s Market Open, I’m Isaac McIntyre, stick with us for HotCopper’s Market Update.