The outlook for Australian share prices is uncertain on Wednesday, with corporate profit results likely to determine how the market opens.
Commonwealth Bank of Australia (ASX: CBA) beat expectations with half-year results released before trading resumed, while former market darling CSL (ASX: CSL) disappointed with interim earnings and after sacking its Chief Executive Officer.
Although Australian Securities Exchange (ASX) futures trading indicated the benchmark ASX200 would start higher, Chief CommSec Economist Ryan Felsman said it could be pressured by the weak U.S. lead-in and lower gold, oil and copper prices overnight.
“Commodity stocks will limit gains on the benchmark,” he told Azzet.
According to ASX futures trading, the index should begin 0.32% stronger as the March share price index contract was quoted 29 points above the previous settlement at 8,848 points at the time of writing.
Weaker than expected retail sales data undermined United States equity markets, with two of the three main benchmarks ending down lower on Tuesday (Wednesday AEDT).
The S&P 500 and the Nasdaq Composite Indexes fell while the Dow Jones Industrial Average rose to a new high as investors analysed corporate results, earnings and figures showing U.S. retail sales stalled in December.
The Dow Jones rose 0.1% while the S&P 500 dropped 0.3% and the Nasdaq lost 0.6%.
Janney Montgomery Scott Chief Investment Strategist Mark Luschini said "bad news is good news" when describing the significance of the retail data for interest rate-sensitive industry indexes, noting also that non-farm payrolls data was due out on Wednesday.
"In anticipation of the jobs report, nobody wants to get too far above their risk budget in the event the number does cause some consternation," Luschini was quoted in a Reuters story as saying.
The Australian market had finished flat on Tuesday with the ASX 200 Index slipping just 0.03% to 8,867.4 points, although eight of the 11 sectors finished higher.
News today also includes results from AGL Energy (ASX: AGL), Computershare (ASX: CPU), Evolution Mining (ASX: EVN), SGH (ASX: SGH) and a speech by Reserve Bank (RBA) Deputy Governor Andrew Hauser .
In fixed interest markets, the Australian Government bond yield curve barely budged as two-year rates were flat at 4.243% and 10 year rates added 0.02% to 4.788%.
