Local Markets Commentary

The Australian market opens end-of-month, mid-week trade on mostly negative international leads and ahead of influential regional data.

China releases official May PMIs 11am AEST. Japan is due to publish further April statistics from pre-ASX trade.

In overnight commodities trade, WTI crude and US gold futures settled moderately lower. Brent crude’s fall was more pronounced. LME copper settled essentially flat.

The $A appreciated significantly, after rising beyond US74.45c early yesterday evening.

Locally today, April financial aggregates, including private sector credit, are due.

Post-trade, the Reserve Bank of Australia (RBA) publishes April reserves and forex figures.

Overseas Market Commentary

Major European and US equities markets fell early or on opening, amid increasing reports of US administrative flux and inquiries.

In the euro zone, business and economic sentiment indicators fell.

Germany’s initial May CPI surprised on the downside, pulling back 0.2% following a flat April. Producer prices slipped 0.1%.

Among US data releases, April personal income and spending were each reported 0.4% higher.

A Texas region manufacturing index also pleased, rising eight points to a 37-month high of 23.3.

An influential house price index rose 5.9% for the March quarter.

Conference Board’s monthly consumer confidence index fell 1.5 to 117.9.

Tonight in the US, the Federal Reserve’s region-by-region economic summary beige book report, a Chicago PMI update and April pending home sales are due.

End-of-month considerations could also figure.

While June trade is usually impacted by summer holiday season, this year’s June: commences with the UK national election and a euro zone central bank policy meeting next week; is followed by a US Federal Reserve policy meeting the next week; and also includes two parliamentary election dates for France.

In addition, national election considerations will feature in Germany where a Spring poll is scheduled.

Tonight’s corporate reports will include earnings from Hewlett Packard Enterprises and Michael Kors.

In overnight corporate news, Amazon briefly traded at a record $1000/share peak.

US-listed telecommunications stocks benefited from a research note rating upgrade.

Deutsche Bank lowered its rating for European banks, however, hurting financial sector trade.