Local Markets Commentary

The Australian market commences today’s trade on largely negative international equities leads, ahead of key data out of China.

China is expected to report November industrial production, retail sales and fixed assets investment 1pm AEDST.

Most key commodities turned overnight. Oil extended recent gains however. Gold settled higher. Iron ore also swung to achieve a gain, but copper turned lower.

The $A was pushed past US74.80c after trading at ~US74.65c yesterday evening.

Locally today, NAB’s monthly business survey report and September quarter residential property prices are due.

A weekly consumer sentiment reading will be published pre-trade.

Overseas Market Commentary

Choppy trade featured across most major European and US equities markets overnight.

Oil rose further to trade at ~1.5-year peaks, supporting the energy sector. Financial stocks suffered.

In the US, 10-year government bond yields appreciated 0.8% to 2.49%, and reached 2.53% during a general sell-off ahead of the Federal Reserve policy meeting.

The November budget deficit was estimated at $US137B, against $US65B a year earlier. The year-to-date $US181B deficit represented a $US20B improvement on the same period last year.

In the UK, the British Chambers of Commerce sounded a GDP growth warning, lifting this year’s forecast 0.3% to 2.1%, but predicting 1.1% and 1.4% growth for 2017 and 2018 respectively.

Tonight in the US, the Federal Reserve commences a two-day policy meeting. Outcomes, including an expected rate rise, are expected early Thursday AEDST.

November import prices and a US small business optimism index are also expected tonight.

In overnight corporate news, Italy’s UniCredit cited a capital boost need in revealing it was offloading Pioneer Investments to Amundi in France, for €3.54B.