Local Markets Commentary

The Australian market commences Friday trade on lacklustre US equities and varying commodities leads.

Locally today, there are no scheduled major data releases. PRY, RFG, SVW, SWM and TRS are among stocks trading ex-dividend, however.

In overnight commodities trade, US gold futures picked up the pace of Wednesday’s gains. Oil turned lower. LME copper continued higher. Iron ore rallied further.

The $A slipped further after falling to ~US76.90c yesterday evening.

G20 finance ministers and central bankers meet in Germany later today for two days of talks.

Regionally, China is expected to publish February property prices over the weekend.

Japan’s markets will be closed Monday due to a public holiday.

Overseas Market Commentary

Major European and US equities markets trade diverged overnight, key US indices opening higher but struggling to maintain gains. European trade appeared buoyed by the Netherlands election and encouraging data.

US president Donald Trump released details of his budget blueprint, which includes significant defence spending (Pentagon +9%; Homeland Security +7%), at the expense of the Environmental Protection Agency (-31%), the State Department (-28%) and pharmaceutical developers (increased regulatory costs).

In US data releases, February housing starts rose 3%. Building permits dropped 6.2%.

Weekly new unemployment claims rose by 2000 to 241,000.

A Philadelphia region business outlook index fell 10.5 to 32.8, following February’s 33-year high.

In the UK, the Bank of England maintained status quo for rates (overnight 0.25%) and asset purchases (£435B).

The euro zone’s final February CPI reading came in at 0.4% growth for the month and 2.0% year-on-year.

Tonight in the US, February industrial production, a University of Michigan consumer sentiment index and a Conference Board leading index are due.

In overnight corporate news, 3M said it was outlaying $US2B for a Johnson Controls personal safety business.

Twenty-First Century Fox’s $US14.3B plan to secure 100% of Sky was placed under UK regulatory review.

Cargill confirmed Macquarie Group would purchase its petroleum trading business.