All indicators point to a subdued opening when trade starts today, with ASX futures marginally up by 1 point early this morning.
Overnight in the US there was a public holiday in observance of George Washington's birthday, pausing activities on the markets.
At home, all eyes are on the Reserve Bank of Australia, which is scheduled to release the minutes from its February meeting today – an opportunity for investors to read the rate adjustment tea leaves.
Europe riding high
Meanwhile, in Europe, the Stoxx 600 index was having a good run, climbing 0.2% to reach a two-year peak, driven by strength in healthcare sectors.
The FTSE 100 index edged up by 0.2%, reaching a near seven-week high, while the mid-cap FTSE 250 index saw a slight 0.1% increase.
France's benchmark index remained unchanged following the government's adjustment of its 2024 GDP growth forecast.
The Australian dollar saw a slight increase against the greenback, trading at 65.4 US cents.
There was a bearish mood on commodity markets, with iron ore prices declining more than 3% in Singapore and copper prices dropping in London. The mood was driven to a large extent by anticipation of corporate earnings reports, particularly that of BHP (ASX:BHP).
The mining behemoth reported an 86% plummet in its half-year profit to A$1.4 billion, despite a 6% revenue increase to A$41.6 billion, citing global inflation, particularly in labour costs, as a significant challenge moving forward.
It announced an interim dividend of A$1.10 per share, a decrease from the previous year's A$1.36, but said it remained optimistic due to solid operational performance and healthy commodity prices.
China, BHP impact commodities
Commodities were also impacted by ongoing concerns about China's economic outlook, despite the People's Bank of China maintaining steady interest rates, countering expectations of a cut amid declining new home prices during the Lunar New Year.
The outlook for the Chinese property sector remains uncertain, with activity stalling and deflation deepening for the fourth consecutive month.
An ANZ Research report on iron ore said: “Headwinds from the ongoing crisis in China’s property market are likely to continue for the iron ore market in the foreseeable future as the industry grapples with debt and sluggish demand.
“Some of this may be offset by growth in demand from social housing, as well as infrastructure.
“This has seen the iron ore project pipeline dry up as developers face the prospect of weak demand.
“Moreover, meagre growth in supply is likely to keep the iron ore market tight and keep prices well supported.”
Investor attention is also directed towards the upcoming National People's Congress (NPC) meeting in China.
Those exposed to the trading giant will obviously be hoping for policy measures that support the economy amid deflationary pressures.
What’s happening in small caps?
Making news this morning, which you can read more about throughout the day with Proactive: