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Market Opener - 06 Feb 2017

Local Markets Commentary

The Australian market opens this week’s trade on strong US equities leads.

In overnight Friday commodities trade, gold settled a little higher. Oil gained. Copper continued to fall. Iron ore fell following a week’s trading hiatus.

The $A was propelled to ~US76.80c, after trading at ~US76.50c Friday evening.

Locally today, December retail sales (11.30am AEDST), ANZ’s monthly job advertisements and the Melbourne Institute inflation report are due.

Last week’s capital city house prices are also expected from CoreLogic.

Caixin will release a January services PMI for China 12.45pm AEDST.

Markets in New Zealand are closed today, due to a public holiday.

Overseas Market Commentary

Major European and US equities markets bounced overnight Friday, proposed US changes to financial sector rules supporting trading interest.

In addition, the US January employment report far exceeded expectations with regards to the number of jobs created, estimating 227,000 new positions.

Wages growth rose just 0.1%, however, and December’s 0.4% gain was revised to a 0.2% rise.

The unemployment rate rose 0.1% to 4.8% as participation rose 0.2% to 62.9%.

Among other US data releases, the ISM January services sector activity index was estimated at 56.5, following 56.6 for December. Forecasters had mostly expected 57.

December factory orders rose 1.3%, following a 2.3% drop in November and an anticipated 1% improvement.

Euro zone final January services PMIs mostly met expectations. December retail sales were reported 0.4% lower.

In the UK, the index fell 1.7 points however, although remained well in expansion mode at 54.5.

Meanwhile, Iran put the US on notice of further nuclear weapon activity, in response to newly-announced US sanctions.

Since then, the US administration has again suggested some sanctions on Russia could be lifted.

Tonight in the US, no major data releases are expected.

Hasbro, Marubeni, Suzuki Motor, Toyota Motor and Twenty-First Century Fox are among companies scheduled to report earnings today and tonight.

6/02/2017 6:49:38 AM

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