Updated February 19, 2019 08:01:58

Photo: BHP will release its half-year profit result after the close of trade today. (AAP: BHP Billiton)

The Australian share market looks set for a fairly muted start to trade, as investors await local earnings results, while European stocks hovered near four-month highs as optimism around US-China trade talks was offset by falls in the auto sector.

The pan-European Stoxx 600 index ended 0.2 per cent higher, buoyed by a similar sentiment that saw stocks in Shanghai surge to six-month highs yesterday.

However, the auto sector was weighed down by concerns US President Donald Trump could impose tariffs on imported cars and parts, as well as declining car sales in China.

"The optimism on trade has been strong, but the underlying economic data has been a lot of weaker — so you have some push and pull factors," Russell Investments portfolio manager David Vickers told Reuters.

BHP, Coles, Blackmores to report profits

Local earnings season remains a major driver of trade on the Australian share market, with reports expected today including mining giant BHP, supermarket Coles and vitamin maker Blackmores.

BHP will report its half-year profit after the close of trade on the ASX.

Citi analysts are forecasting a $4.211 billion profit for the first half of the financial year but think there is potential for an upside surprise due to higher iron ore and oil prices.

However, RBC Capital Markets expects one-off costs including tax and accounting treatment and exploration expenses to put a dampener on BHP's result.

Supermarket Coles will unveil its first standalone profit since spinning off from Wesfarmers late last year.

RBA to release minutes after shifting stance

The Reserve Bank will release the minutes of its February board meeting later this morning.

The central bank left interest rates unchanged earlier this month but the next day RBA governor Philip Lowe signalled a shift in stance, saying the next move in interest rates is just as likely to be down as it is to be up.

"The RBA minutes due on Tuesday may provide further details on what conditions would be needed for the central bank to cut interest rates," said Ben Udy from Capital Economics.

NAB senior economist David de Garis is not expecting any revelations in today's minutes but will be closely watching Dr Lowe's testimony before the House Economics Committee on Friday morning, which he says will provide "yet more opportunities for MPs to tease out local and international risks from the RBA".

ABC/ Wires

Topics: stockmarket, markets, business-economics-and-finance, company-news, australia

First posted February 19, 2019 08:00:55