Local Markets Commentary

The Australian market commences a new month’s trade on new data out of China over the weekend, influential figures published in the US, Europe and UK overnight Friday, and some positive commodities leads.

China’s April manufacturing PMI, reported yesterday, fell 0.6 to 51.2, against forecasts of 51.6. March’s reading had been the best in almost five years.

In overnight Friday commodities trade, US gold futures, oil and LME copper turned higher. Iron ore (China port, 62% Fe) gained.

The $A was pushed modestly higher after trading at ~US74.75c early Friday evening.

Locally today, a manufacturing PMI, independent inflation report and monthly and weekly residential property prices are due, ahead of the Reserve Bank of Australia (RBA) policy meeting tomorrow.

For its part, the RBA publishes a commodity price index post-trade.

Trade volumes could be lighter than usual, due to Monday public holidays in China, the UK and Europe, and also in Queensland and the Northern Territory.

Regionally today, an April manufacturing PMI is due for Japan.

Overseas Market Commentary

Choppy trade featured across major European and US equities markets overnight Friday, amid some key data releases and corporate reports from influential stocks.

US March quarter GDP growth was estimated, in the first of three readings, at a three-year-low of 0.7% year-on-year, following 2.1% for the December quarter.

Employment costs rose 0.3% to 0.8%.

The April Chicago PMI rose 0.6 to 58.3, defying expectations of a pullback.

The University of Michigan’s final 97 April consumer sentiment reading represented a 0.1 point rise for the month.

In the euro zone, a preliminary April CPI rose to 1.9%, year-on-year, from 1.5% in March.

Ahead of next weekend’s presidential poll decider, France’s March quarter GDP growth was reported at 0.3% for the quarter, against 0.5% for the December quarter.

The UK’s initial March quarter GDP growth came in at 0.3% for the quarter and 2.1% year-on-year, following 0.7% and 1.9% respectively for the December quarter.

Tonight in the US, March personal income and spending, and construction spending, are due, together with ISM’s influential manufacturing PMI for April and a final April manufacturing PMI from Markit.

In overnight Friday corporate news, Exxon Mobil, Starbucks, General Motors, Intel, Microsoft, Alphabet and Amazon represented just a few of the high-profile companies pushed and pulled by mixed results and interpretations.

Qualcomm issued a significant sales and profit warning on a stoush with Apple.

In Europe and the UK, UBS, Barclays and Royal Bank of Scotland published figures that appeared to impress.

UK and mainland European markets will remain closed later today and tonight, due to public holidays.