Local Markets Commentary

An RBA policy meeting and statement, plus influential domestic and regional data, will feature during Australian market trade today. Overnight key commodity price leads are also largely positive.

In China, Caixin is due to release a final July manufacturing PMI 11.45am AEST.

A final manufacturing PMI is due out of Japan 10.30am.

Locally today, the Reserve Bank of Australia (RBA) holds a policy meeting from which outcomes will be revealed 2.30pm AEST.

Pre-trade, AiG’s July manufacturing index and a weekly consumer sentiment reading are due. A commodity price index is scheduled for release post-trade.

In overnight commodities trade, iron ore (China port 62% Fe) settled sharply higher, beyond $US73.5/t. Oil prices posted a further gain. US gold futures fell slightly. LME copper turned higher.

The $A was pushed higher, after slipping below US79.75c early yesterday evening.

Overseas Market Commentary

Major European and US equities markets mostly traded higher on opening, but largely failed to hold gains in end-of-month trade amid mixed corporate reports and economic indicators.

A final July CPI reading for the euro zone confirmed 1.4% growth. Unemployment fell 0.2% to 9.1%, however.

Germany’s June retail sales rose 1.1%, following a 0.5% gain for May and expectations of a further 0.2% improvement.

In the US, June pending home sales were reported 1.5% for the month.

The Chicago PMI fell 6.8 points to a nonetheless robust 58.9.

A Texas region manufacturing index rose 1.8 points to 16.8, representing a 10th consecutive monthly improvement.

In domestic political news, the White House communications director was let go, less than two weeks after the announcement of his appointment, and within two days of the arrival of a new White House chief of staff.

Tonight in the US, ISM’s July manufacturing activity index, June personal income and spending, personal consumption expenditure (PCE), construction sector spending and a final Markit July manufacturing PMI are due.

Apple, BP, Honda Motor, Hyundai, Mitsubishi UFJ, Rolls-Royce, Sony and Yamaha are among companies scheduled to report earnings today or tonight. CYBG is due to provide a trading update.

In overnight corporate news, cable TV specialists Discovery Communications and Scripps Networks have agreed to a merger whereby Discovery will pay ~$US14.6B in cash and scrip for Scripps. Discovery quarterly results, also released overnight, helped push the stock 8% lower.

Boeing traded at new heights following a positive research report, plus pleasing select sales expectations and plans for a new business unit.

HSBC added a $US2B buy-back to quarterly profit revelations.

China’s Sohu appreciated 11% on both quarterly figures and an upbeat revenue outlook.