Local Markets Commentary

The Australian market opens Friday trade on unconvincing international equities leads.

Overnight commodities trade was mixed. Oil continued to settle higher. US gold futures turned to close a little lower. LME copper was also pushed lower, but iron ore swung higher again.

The $A barely moved after approaching US77.30c early yesterday evening.

Overseas Market Commentary

Overall sentiment proved comparatively weak and fickle across most major European and US equities markets overnight.

In the US, Republican senators put forward a revised healthcare bill, drawing quick reactions from practitioners and industry stakeholders.

Federal Reserve chair Janet Yellen met with a Senate banking panel, underscoring her seemingly inclusive and disciplined comments to a different committee the previous day. In response to questioning, Ms Yellen predicted the US administration’s 3% GDP target would prove a ‘challenge’ and that inflationary trends would turn.

Among US data releases, June producer prices were calculated 0.1% higher than for May, and 2% higher year-on-year, against May’s 2.4% rise.

The government’s June budget was reported as $US90B in deficit.

Earlier, Germany’s final June CPI reading confirmed the initially estimated 1.6% year-on-year growth.

Meanwhile, the UK’s independent Office for Budget Responsibility determined State finances would significantly fail the stress testing put in place for the banking sector.

Tonight in the US, June CPI, retail sales and industrial production are due, together with a preliminary University of Michigan consumer sentiment reading.

Companies scheduled to report earnings include JPMorgan Chase, Citigroup and Wells Fargo. UK-headquartered online retailer ASOS and employment group Hays are due to provide trading updates.

In overnight corporate news, Target Corp appreciated 4% after predicting better-than-anticipated quarterly sales. Other retailers also then appeared in favour.

Snap recovered 3% following a buy recommendation.