Local Markets Commentary

The Australian market commences a holiday-interrupted week’s trade, ahead of a swag of international and domestic PMI, CPI and GDP updates.

Overnight Friday, the US installed a new president, and major US equities indices swung higher.

In overnight Friday commodities trade, gold turned higher and oil continued so. LME copper settled with a slight gain. Iron ore continued to pull back.

Since then, China’s NBS has published detailed statistics associated with Friday’s December quarter GDP figures. These included 3.8% financial sector growth, against 5.8% in the September quarter; and 7.7% for the housing sector, following 8.8% during July – September.

The $A was pushed higher after trading at ~US75.30c Friday evening.

Locally today, November lending finance figures are due. Housing finance components were revealed last week.

The ASX will not trade Thursday, due to Australia Day. Friday’s trade is expected to be light.

Overseas Market Commentary

Choppy trade featured across major European and US equities markets overnight Friday, as the US presidential inauguration commandeered headlines.

In data releases, UK December retail sales disappointed, falling 0.9% for the month and rising 4.3%. Forecasters had anticipated a 0.1% monthly pullback and 7.1% year-on-year increase.

Germany’s December producer prices rose 1% following a 0.1% gain in November.

Tonight in the US, no major economic reports are scheduled for release, but earnings season continues.

European Central Bank (ECB) president Mario Draghi is scheduled to speak publicly in Torino, Italy.

Halliburton, McDonald’s Corp, Philips Lighting, Sthree and Yahoo! are due to report earnings. Alliance Pharma is expected to provide a trading update.