Local Markets Commentary

International equities leads are positive, but key commodities mixed as the Australian market opens today’s trade.

In overnight commodities trade, oil swung higher and rallied. Gold also turned, settling modestly higher. Iron ore dropped, appearing hurt by increased transaction fees in China across a range of commodities, and softer steel prices. Copper pulled back.

The $A remained range-bound again after approaching ~US75.60c early yesterday evening.

Locally today, a leading indices report, September quarter wage price index, employment indicator and October vehicle sales are due.

Three listings will also feature, from 11.30am.

Overseas Market Commentary

Major European and US equities markets settled higher overnight.

Oil swung higher and MSCI published planned changes to key indices, amid a plethora of data releases. US tech stocks also notably returned to favour.

In the US, October retail sales were reported 0.8% higher for the month and September’s were revised from a 0.6% rise to 1.0% gain. October sales were 4.3% better than a year ago.

A New York region manufacturing index was also cheered, rising 8.3 to an expansionary 1.5, boosted by increased orders and shipments.

National business inventories grew 0.1% during October, against expectations of a 0.2% increase.

October import and export prices rose 0.5% and 0.2% respectively.

The UK’s October CPI rose 0.9%, following 1.0% growth in September and against expectations of 1.1%.

Euro zone September quarter GDP growth was reported at 0.3% for the quarter and 1.6% year-on-year, in an initial reading.

Germany’s September quarter GDP growth was estimated at just 0.2%, against 0.4% for the June quarter and 0.7% during the March quarter.

Tonight in the US, October industrial production and producer prices are due, together with a homebuilders’ sentiment index and weekly mortgage applications.

Two Federal Reserve presidents are scheduled to speak, one in London and the other in New York.

Aggreko, Cisco Systems, Lowe’s and Target Corp are scheduled to report later today and tonight.

Overnight, US retailer Home Depot reported robust quarterly sales and raised its full-year forecast.

Major airlines in the US benefited from revelations Berkshire Hathaway had invested in at least three of the four largest carriers.

Earlier, Vodafone revealed a €5B India division write-down and a €5B interim loss, following a €2.3B loss a year-ago.