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RussianPositive developments over the weekend are seen casting good leads for the Australian stock markets on Monday.
China's decision to cut its reserve requirement ratio on Saturday, by 50 basis points, taking effect 24 February, will improve risk sentiments today and lift the bearish mood, analysts said.
According to IG Markets analyst Stan Shamu, the dismal housing data reported by China prompted Chinese authorities to cut the reserve requirement ratio for financial institutions that may allow more lending to the domestic markets.
Nick White of BELLFX said in a commentary that the Australian dollar has risen this morning to the high 1.0700's after China's weekend move to yet again lower the reserve requirements it imposes on its banks.
Analysts noted "risk currencies open significantly higher this morning, indicating that risk appetite has vastly improved."
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"As a result, we are likely to see some strength in the cyclical sectors and a positive bias to our opening call. Another factor to consider today is that several companies go ex-dividend and this might put a dent in the market early on," Mr. Shamu noted.
Reporting today are Bendigo and Adelaide Bank, Amcor, Bluescope and Challenger as the major ones to keep an eye on. No major data releases for local economic front.
