Local Markets Commentary

The Australian market commences today’s trade on uninspiring overnight international equities s and largely negative commodities leads.

In overnight commodities trade, US gold futures fell. Oil turned to settle higher. Copper swung lower and dropped. Iron ore (China port, 62% Fe) traded almost steady.

The $A is significantly lower after trading at ~US74.85c early yesterday evening.

Locally today, March trade figures will be published 11.30am AEST.

The HIA releases March new home sales.

A 1.10pm speech focusing on household debt and residential property prices by Reserve Bank of Australia (RBA) governor Philip Lowe is also keenly anticipated.

Regionally, Caixin releases its final April services PMI reading for China 11.45am.

Japan’s markets will remain closed today and tomorrow due to public holidays.

Overseas Market Commentary

Major European and US equities markets headed lower on opening overnight.

Later, the US Federal Reserve gave little indication of the timing of the next rates move, or any adjustment to assets, but described the weak March quarter GDP as ‘likely transitory’.

In US data releases, ISM’s April services sector activity index rose 2.3 to 57.5, a significant result given this sector comprises ~80% of GDP calculations.

A private sector employment report estimated 177,000 new jobs for April.

In the meantime, the US House of Representatives approved legislation enabling $US1.2 trillion worth of government spending through to 30 September.

The Senate is expected to also pass the legislation prior to the Friday midnight expiry of a current one-week funding arrangement.

Earlier, the euro zone’s 0.5% March quarter GDP growth pleased, the 1.7% year-on-year rise also indicating a possible 1.8% advance for 2017. In addition, December quarter 2016 GDP growth was revised 0.1% higher to 0.5%.

Producer prices fell 0.3% in March however, sliding 3.9% year-on-year.

France completes a final vote for a new president this coming Sunday. An overnight TV debate between the two candidates featured national security argy-bargy and personal barbs.

The UK reported a 53.1 construction PMI, 0.9 above March’s reading and at a four-month high. The figure was seen as a significant statistic ahead of the Bank of England’s policy meeting next week.

Tonight in the US, weekly new unemployment claims, a job cuts report, March trade balance, productivity and factory orders are due, ahead of tomorrow night’s monthly national employment report.

Across the Atlantic, European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly.

Adidas, A-B InBev, HSBC, Kellogg, Royal Dutch Shell, Siemens and Viacom are among companies due to report earnings or provide a trading update.

In overnight corporate news, Facebook quarterly profit soared more than 75%, but Tesla’s loss doubled, due to vehicle and energy division outlays.

ITV revealed its CEO had resigned, effective June.