Positive 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."

"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.

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

1.0779

0.0105

0.98%

ASX (cash)

4191

-5

-0.12%

US DOW (cash)

12953

211

1.66%

US S&P (cash)

1363.0

15

1.11%

UK FTSE (cash)

5921

71

1.21%

German DAX (cash)

6882

222

3.33%

Japan 225 (cash)

9490

106

1.13%

Rio Tinto Plc (London)

36.22

-0.11

-0.30%

BHP Billiton Plc (London)

20.23

-0.31

-1.51%

BHP Billiton Ltd. ADR (US) (AUD)

35.55

0.35

0.99%

US Light Crude Oil (Mar)

105.22

3.70

3.64%

Gold (spot)

1723.0

1.0

0.06%

Aluminium (London)

2164.00

4

0.19%

Copper (London)

8175.00

-125

-1.51%

Nickel (London)

19625.00

-275

-1.38%

Zinc (London)

1945.00

-33

-1.67%

RBA Cash Rate to be decreased by 25bp (Mar) (%)

32.00

0

0.00%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday's close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.