Stocks eye fourth day of gains

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Australian shares are expected to open higher ahead of local jobs figures for July and the release of full-year results by companies including Telstra, News Corp and Tabcorp.

On the ASX24, the SPI futures index was 8 points higher to 4288. The Aussie dollar was higher at $US1.0568 after closing yesterday at $US1.0545. It was also buying 85.5 euro cents, 67.5 pence and 82.9 yen.

At 11.30am today, the ABS releases July jobs data. A Bloomberg survey of economists expected the unemployment rate to rise for the third month in a row. The survey predicted the jobless rate would climb from 5.2 per cent to 5.3 per cent despite the addition of the 10,000 jobs. The unemployment rate rose from 5.1 per cent to 5.2 per cent in June.

Also today, China releases CPI data for year to the end of July, with a Bloomberg survey forecasting a 1.7 per cent rise in consumer prices. That would be a slowdown from the year to the end of June, when prices rose 2.2 per cent. A fall in China's inflation could bolster calls for more stimulus for the Chinese economy.

Making news today

In economics news:

  • ABS labour force for July

In company news:

  • The following companies release full year results: Tabcorp Holdings, News Corporation, Telstra, Mount Gibson Iron, Aquarius Platinum, Australian Infrastructure Fund, Bunnings Warehouse Property Trust, Flexigroup Ltd, Webjet Ltd
  • The following companies hold general meetings: Red Sky Energy, Apollo Consolidated, Red Sky Energy, Sprint Energy
  • Ozgrowth Limited record date
  • Westoz Investment Company record date
  • Aurora Oil & Gas - Quarterly production update

Analyst rating changes:

  • Cochlear downgraded to underweight at JPMorgan
  • Telstra downgraded to neutral at UBS

How we fared yesterday

Australian shares extend gains to a third straight day, led by banks and resources, on expectations Europe can revive its economy.

The benchmark S&P/ASX200 index rose 21 points, or 0.5 per cent, to 4312.6 - its highest close since May 4. While the broader All Ordinaries added 21.5 points, or 0.5 per cent, to 4332.9 points.

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