Local Markets Commentary

The Australian market opens mid-week trade on uninspiring international equities and mixed commodities leads ahead of key northern hemisphere events later today and tonight.

In overnight commodities trade, US gold futures settled effectively flat. Oil fell further. Copper continued to gain. Iron ore (China port, 62% Fe) settled a little lower.

The $A was pushed higher after slipping to ~US75.50c yesterday evening.

Locally today, the Melbourne Institute and Westpac monthly consumer sentiment report is due.

January lending finance figures, February new vehicle sales and an employment indicator are also due.

Large-cap stocks trading ex-dividend today include: BRG, COH, CSL, and REH.

Overseas Market Commentary

Major European and US equities markets mostly traded lower on opening overnight: amid a storm in north-east US and yet lower oil prices; ahead of the US Federal Reserve policy announcement tonight; and following a legislative green light for the UK to begin the process of separating from the European Union.

In addition, a government department report estimated individual US health insurance premiums would increase 20% next year.

US February producer prices rose 0.3%, following a 0.6% gain for January.

Across the Atlantic, a centre-right candidate for the April-May national election in France was placed under formal investigation.

The Netherlands holds a national election later today and tonight.

In euro zone data releases, January industrial production was reported 0.9% higher for the month, following a 1.2% drop in December.

Late Monday, the UK House of Lords enabled legislation to pass covering the UK’s triggering of negotiations to leave the European Union.

Tonight in the US, the Federal Reserve announces the outcomes of this week’s policy meeting.

An interest rate rise is anticipated, together with clues on the likely pace of any further expected moves.

February CPI and retail sales, home builders’ sentiment and New York region manufacturing indices, and January business inventories are also due, together with weekly mortgage applications.

Guess and Oracle are among companies due to report results.

In overnight corporate news, Volkswagen comments sparked speculation of a future partnership with Fiat Chrysler.

Earlier, Toshiba revealed it was again delaying releasing results and was considering selling its US nuclear interests.