Local Markets Commentary

The Australian market commences today’s trade on lacklustre international equities leads, amid uncertain domestic and political scenarios, and ahead of the Reserve Bank of Australia’s (RBA) first policy meeting of the year.

In overnight commodities trade, gold rallied. Oil turned lower. Copper swung higher. Iron ore continued to fall.

The $A traded a little lower, after being pushed beyond ~US76.65c yesterday evening.

Locally today, the RBA holds a policy meeting and at 2.30pm AEDST, announces outcomes.

Pre-trade, a construction sector activity index and a weekly consumer sentiment reading are due.

Post-trade, the RBA publishes its monthly reserve assets report.

China is expected to report January foreign reserves anytime from today.

Overseas Market Commentary

Weak and/or vacillating sentiment featured across major European and US equities markets overnight.

In France, a right-wing candidate for the April-May national election launched her campaign in part on a vow to reinstate a national currency.

In data releases, a key euro zone sentiment index fell 0.8 to 17.4.

Germany’s December industrial orders were reported 5.2% higher, following a 3.6% drop in November.

European Central Bank (ECB) president Mario Draghi told the European Parliament that he was concerned at potential adverse international ramifications should the US roll back financial regulations put in place following the 2008-09 global financial crisis.

Tonight in the US, December trade figures are due. Consumer credit and job opening reports are also expected.

Archer Daniels Midland, BNP Paribas, Coca-Cola, General Motors, Mondelez International, Singapore Airlines and Walt Disney are among companies scheduled to report earnings today and tonight.

In overnight corporate news, toy manufacturer Hasbro gained more than 12% after exceeding December quarter profit and revenue forecasts.

Earlier, Toyota Motor reported a 22.5% drop in December quarter profit and 3.5% sales revenue fall, but raised expected net and operating profits for the financial year ending 31 March, on support from a softer yen.

Tiffany shares also suffered, on the resignation of the company’s CEO.