Morning traders. Good to be back. Big thanks to Gttrain for standing in last week - great effort from a champion bloke.
Market wrap:
Shares have a cautiously positive platform for the day after improving economic data helped US stocks seal a sixth week of gains on Friday.
The September SPI 200 futures contract advanced five points or 0.1% on Saturday morning to 4335 as oil and most metals advanced.
The S&P 500 rallied 0.19% or three points on Friday for a weekly gain of 0.9% that left the benchmark index less than one point shy of a four-year high set in April. The Dow put on 25 points or 0.19% and the Nasdaq added 0.46% as tech stocks and industrials led the rise.
"We have surpassed most people's expectations for what stocks would do in June, July and August," the chief investment strategist of Riverfront Investment Group in the US told Bloomberg. "Gradually people are succumbing and putting money in."
Volatility was low, trading volumes subdued and sentiment generally positive as European markets set the tone and economic data supported a view of the US economy as gently improving. An index of consumer sentiment delivered its best reading since May. The University of Michigan-Reuters sentiment index increased to 73.6 this month from a final read of 72.3 in July, beating economists' projections but well below pre-GFC levels. Separately, a leading economic index grew a stronger-than-expected 0.4% this month but May and June figures were revised downwards.
European markets continued to edge higher following German Chancellor Angela Merkel's renewed commitment to maintain the euro on Thursday. Germany's DAX put on 0.64%, France's CAC 0.23% and Britain's FTSE 0.31%. Those rises helped the Stoxx Europe 600 index rally for an 11th week to its highest level in 13 months.
Oil rallied for a third straight week to its highest price since May. West Texas crude for September delivery put on 61 cents or 0.6% at $96.21 a barrel and a weekly gain of 3.4%.
Industrial metals took their cue from Merkel's comments and US consumer confidence. In London, copper added 1%, aluminium 0.8%, lead 2.1%, nickel 0.4%, tin 1.6% and zinc 0.8%. US copper for September delivery gained three cents or 0.9% at US$3.41 a pound.
Gold ended a fraction lower on Friday to finish a directionless week. Gold for December delivery eased $1.70 or 0.1% to US$1,617.50 an ounce and a weekly loss of 0.3%.
TRADING THEMES THIS WEEK
EARNINGS SEASON: The domestic earnings season continues at full-bore and should offer trading opportunities after a mixed first week. Among the big names reporting this week are BHP, Woodside, Qantas and Woolworths. Highlights include: BEN, BSL, MAH, CGF, CMJ (today); SWM, AMC, SHL, MGR, MND, OSH (tomorrow); BHP, SUN, AGK, AIO, APA, BLD, BTA, CCL, CSL, PBG, SEK, WPL (Wed); CAB, FKP, FXJ, IAG, ILU, ORG, QAN, QRN, RHC, TTS (Thu); AGO, BBG, CWN, FMG, TEL, WHC and WOW (Fri).
CHINESE MANUFACTURING: The month is barely half over and the market is preparing for an insight into how China's manufacturing sector is performing. HSBC delivers its "flash" or preliminary purchasing managers' index for this month on Thursday.
ECONOMIC NEWS: An exceptionally thin week for economic news may leave world markets at the mercy of headlines from Europe. The domestic calendar includes: the minutes from the last Reserve Bank meeting (tomorrow); a leading index (Wed); and another leading index and testimony from RBA Governor Glenn Stevens before the Standing Committee on Economics (Fri). Highlights of a skinny US calendar include: existing home sales, crude oil inventories, minutes from the last Fed meeting (Wed); weekly jobless claims, flash manufacturing, new home sales (Thu); and durable goods/core durable goods (Fri).
