The Australian sharemarket is set to open higher as earnings season progresses, with BHP reporting a major profit increase.
ASX futures are up 0.2% to 8,894. The ASX 200 closed 0.2% higher at 8,937.1 yesterday, buoyed by a 5.7% rally in its technology index.
Mining giant BHP reported its earnings before the market opened today, saying net profit surged 28% last half. BHP joint venture Vicuña yesterday unveiled a US$18 billion plan to develop mines in Argentina, and today announced a $4.3 billion deal to deliver silver to Wheaton Precious Metals.
The ASX’s materials index fell by 1% yesterday following a drop in commodity prices on Friday. BHP’s shares closed 1.5% lower, while Rio Tinto was down 4.1% and Fortescue shed 4.7%.
Companies including Challenger and Seek, also reported earnings before the bell today. Challenger’s profits rose, while Seek swung to a net loss.
Reserve Bank of Australia meeting minutes are due at 11:30 am AEDT (12:30 am GMT) today.
Meanwhile, Wall Street trading was closed on Monday for Presidents' Day public holiday.
On Friday (Saturday AEDT), the S&P 500 closed 0.1% higher, the Nasdaq Composite dipped 0.2%, and the Dow Jones Industrial Average climbed 0.1%. This was supported by better-than-expected consumer price index data from January, which showed monthly inflation easing 0.3 percentage points from December.
Australian two-year bond yields were down 0.02% to 4.21%, while 10-year yields fell 0.03% to 4.719%.
