Moves in the USD continue to dominate market activity. A slide in the globe’s reserve currency pushed shares higher in Europe on Friday night, although a late session bounce in the dollar saw US investors reduce some market gains. Australian investors are likely to enjoy a better day as commodity prices are generally higher, supporting resource shares and adding positive weight to the short term outlook for the AUD.
Stock reporting season is underway in the US. On Friday night Bank of America reported in line, but JP Morgan and fund managers Blackrock delivered better than forecast earnings. This saw financials lead the market gains, and may see some of Friday’s heavy selling of local banks reversed. Support for both resources and financials could see the Australia 200 index outstrip the futures market indication of a 6 point opening gain.
Reporting is also a feature of local trading this week. Whitehaven coal will report production numbers, and Transurban delivers traffic statistics today. Later in the week Rio, Paladin, Woodside and Sydney Airports will all report on activity. New Zealand investors will look to Fonterra’s report on Tuesday. Australian jobs data and US CPI numbers will attract attention, but China GDP, industrial production and retail sales on Friday are the releases to watch.