This morning’s soft opening represents a largely neutral macro stance for the ASX 200 index. With US and Chinese markets closed, the index has opened inside yesterday’s range and in wait and see mode. Investors are waiting on a number of developments including the BHP profit result; this week’s bond auctions in the US and the Fed minutes.

The divergence of opinion on Woodside’s capital raising and Scarborough acquisition could lead to share price volatility for a while yet. At the end of the day, management have done what the market was asking for and patiently put together a suite of growth assets. Development of assets like these carries inevitable risk and those risks are gradually increasing as available gas resources become less accessible and/or carry greater political risk. The current sell-off provides an opportunity to access Woodside’s growth potential and assume its growth risk at a more favourable entry point.

APN Outdoor failed to justify yesterday’s rally with this morning’s result. Revenue growth was moderate at 4% and management noted that trading so far this year is in line with expectations, implying ongoing low/moderate growth.