After rising 4.2% over the past 8 trading sessions, the stock market may open on a cautious note this morning.

Mining stocks may be stopped in their tracks by last night’s sell-off in copper and news that Rio has been charged with fraud by the US Securities Commission

BHP has maintained F18 production guidance in all its commodities. However, this morning’s production report may not be enough to provide further fuel for the recent rally.  While BHP’s guidance indicates it will make up for the September quarter’s 3% decline in iron ore production, future production increases may miss the higher prices available last quarter

US markets provided yet another firm lead for this morning’s local trading. However, last night’s miniscule gain may not be particularly supportive for an Australian rally which is now becoming a bit long in the tooth.  US markets are barely inching higher, giving the impression investors see themselves as caught between a rock and a hard place. It’s true that low interest rates and what has so far been a good reporting season are providing no reason to sell. However, current high valuations are equally a constraint on optimism. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.