Global equities higher, oil drops, precious metals lower, big day for reporting in Aus, ASX futures 24 points higher

Equities were healthy overnight, partly due to some optimism about a Greek/Eurogroup reconciliation - but see my notes from yesterday. This charade will probably play out a little longer. At 10:30am today a meeting between the Eurozone's finance ministers, including Greece's firey Yanis Varoufakis, will take place and I suspect it's too early to end the banter - Greece has two and a half weeks until its deadline is up to accept the next bailout tranche and play ball with the ECB, IMF and EC. These will be an intense couple of weeks, and I suspect Greece will use up all of its time and political capital fighting with the rest of its Eurozone counterparts to ensure maximum Syriza voter satisfaction (before caving and accepting more money and the associated terms).

Even with all of that going on in Europe, I'm sure Australian equity investors will be most focused on the local reporting calendar, today being the first big day of the season. The following ASX 300 stocks will report earnings today:

  • AGL Energy (AGL)
  • Aquarius Platinum (AQP)
  • Boral (BLD)
  • Commonwealth Bank (CBA)
  • Computershare (CPU)
  • CSL (CSL)
  • Domino's Pizza (DMP)
  • Goodman Fielder (GFF)
  • Genworth Mortgage Insurance (GMA)
  • Oz Minerals (OZL)
  • Stockland (SGP)
  • Sky City (SKC)
  • Suncorp (SUN)
Let's see if this week's earnings announcements propel the ASX 200 (first chart) higher or give reason to put this rally to bed

Today's second chart shows the level of WTI crude oil, which remains range-bound after lifting off its January lows recently. Even if oil is near it's bottom, it's certainly not a no-brainer to take long bets on this commodity. Here's an intro-note that I wrote for a blog post yesterday: "This week Citigroup speculated that the bottom in the West Texas Intermediate (WTI) crude oil price could be as low as US$20 per barrel. (The media got hold of the $20 line and abused its context a little, but nonetheless it's worth noting.) Big falls in the oil price as well as stories of where its price may end up are driving record interest in trade for this commodity.

"US$100+ oil prices existed up until 30 July 2014, before the price began to fall significantly. These high prices made oil all the more attractive to produce, and this energised and grew the industry of explorers, producers, servicers as well as energy infrastructure builders and as a result the world’s production of oil began to rise. New technologies like oil shale extraction were made feasible due to the high oil price and all of this came at a time when global demand for crude was actually falling.

"When Saudi-led OPEC consistently refused to cut their production, the world became awash with oil. We now have unusually high stores of crude oil on land, in ships, in pipelines – if there’s a place to store oil right now it’ll get used, because there’s just not enough demand to soak up supply."

Today’s charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.

Upcoming economic announcements: Eurozone finance ministers meet at 10:30am, AU home loans for December at 11:30am, AU investment lending at 11:30am, all Sydney time.

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