SYDNEY (XFN-ASIA) - Share prices are expected to open lower, dragged down by miners which are expected to be under selling pressure following sharp falls in gold, copper and zinc prices on Friday, dealers said.
But they said losses are likely to be limited by support in the broader market as investors anticipate solid earnings reports in the week ahead although forward momentum may be lacking as the market pauses after reaching record levels last week.
The S&P/ASX 200 March futures contract ended its last session unchanged at 5,793.0 suggesting a flat start to trading.
Australand Property Group is the only S&P/ASX 200 company scheduled to report half-year earnings today but later in the week majors including BHP Billiton are due to report.
BHP is expected to report a record 6.3 bln usd for the half year to December, fueled by higher prices and record output of products such as iron ore, aluminum, alumina and manganese ore.
The Reserve Bank of Australia holds its first policy meeting for the year tomorrow. A fall in December quarter inflation means the central bank is not expected to lift its official cash rate from its current level of 6.25 pct. The outcome of the meeting will be announced on Wednesday.
On Friday, share prices closed at fresh record highs as sentiment remained broadly bullish.
The S&P/ASX 200 ended up 17.4 points or 0.30 pct to a new record close of of 5,831.5. The key index also hit a fresh intraday record of 5,841.3.
The broader All Ordinaries index gained 17.6 points to settle at a new all-time high of 5,814.4, after setting a new intraday record of 5,821.3.
In New York, share prices ended narrowly mixed on Friday after the market absorbed a weaker-than-expected employment report that curbed bullish sentiment after three consecutive days of gains to record highs.
The Dow Jones Industrial Average ended down 20.19 points at 12,653.49.
News Corp ended up 0.20 pct while National Australia Bank American Depositary Receipts finished down 0.28 pct.
In London, share prices were strong over last week, reflecting optimism on the other side of the Atlantic and continuing merger and acquisition speculation.
The FTSE 100 ended up 28.7 points at 6,310.9 on Friday. BHP Billiton fell 0.10 pct while Rio Tinto dropped 2.14 pct.
Crude oil prices rose sharply again on Friday as investors covered positions on prospects for much colder weather in the US Northeast over the coming week. The March Nymex crude contract rose 1.72 usd or 3.0 pct to settle at 59.02 usd a barrel.
Base metal prices dived on the London Metal Exchange on Friday on reports of heavy hedge fund losses.
The spot zinc price slid 9.3 pct with the futures quote off 6.3 pct. Copper fell 4.6 pct to a 10-month low.
Gold fell as technical charts prompted investors to take profits. The most active April Comex gold contract fell 11.50 usd to end at 651.50 usd an ounce.
Ahead in Australia, December retail trade and building approvals data will be released as well as ANZ's January survey of job advertisements.
(1 usd = 1.29 aud)
bruce.hextall@xfn.com
blh/mas