Local Markets Commentary

The Australian market looks set to tumble on opening after US equities fell decisively overnight and sentiment waned for some key commodities.

In commodities trade, gold rallied. Oil and copper fell further. Iron ore dropped.

The $A fell below US76.90c after trading at ~US77.20c yesterday evening.

Locally today, Reserve Bank of Australia (RBA) deputy governor Guy Debelle is speaking on a forex trade global code of conduct at a conference in Singapore 12.40pm AEDST.

A skilled vacancies update is also due today.

FLT and NCM are among stocks trading ex-dividend. Please see p3 for a detailed list.

The Bank of Japan is scheduled to release the minutes of its January policy meeting 9.50am AEDST. Japan’s February trade figures are also expected this morning.

Overseas Market Commentary

US equities markets fell within an hour of opening overnight and helped drag major European indices lower.

US sentiment had reportedly soured as health care bill struggled for support, bringing into question other proposed policy changes by the new US administration.

Bank of England governor Mark Carney warned that banking scandals had meant ‘enormous’ economic consequences, depriving banks of funds that could have supported up to $US5 trillion worth of business and household lending.

UK February CPI surprised forecasters, rising 2.3% year-on-year, boosted in part by food prices, which rose the first time on an annual basis in 2.5 years.

Meanwhile, a presidential candidate debate in France appeared to support views a centre-aligned nominee remained in favour ahead of next month’s initial polling.

In the US, the December quarter current account deficit was reported 3.1% lower, at $US112.4B.

Tonight in the US, February existing home sales, a January house price index and weekly mortgage applications are due.