Local Markets Commentary

The Australian market opens today’s trade ahead of a Reserve Bank of Australia (RBA) policy meeting, on mostly improved international equities sentiment, but with US equities markets closed tonight, and rather mixed commodities leads.

The RBA is due to release an outcomes statement from the monthly policy meeting at 2.30pm AEST. Once again, the language and emphases are keenly anticipated, with no immediate rates change expected.

Meanwhile, the Australian Bureau of Statistics is scheduled to publish national June retail sales 11.30am.

Pre-trade, a weekly consumer sentiment index is due.

In overnight commodities trade, gold and other precious metals dropped. Oil rallied further. LME copper settled a little lower. Iron ore (China port, 62% Fe) turned lower.

The $A appeared comparatively range-bound after trading at ~US76.55c yesterday evening.

Overseas Market Commentary

The NYSE and NASDAQ will be closed tonight, due to 4 July US Independence Day commemorations.

NYMEX and COMEX will trade but will close early.

Canada’s markets are also closed tonight, due to a public holiday.

Full trade resumes across all North American exchanges tomorrow night.

Overnight, major European and US equities markets mostly traded higher from opening overnight, the energy sector continuing to bolster general indices.

The UK’s final June manufacturing PMI came in at 54.3, down two points for the month.

Germany’s was calculated at a more than six-year high, at 59.6.

In the US, ISM’s June manufacturing index was reported 2.9 points higher for the month, at 57.8, representing an almost three-year peak.

Markit’s 52.0 final June manufacturing PMI estimate proved a contrast, falling 0.7 for the month.

May construction spending remained essentially flat however, despite expectations of a 0.3% rise following a 0.7% fall in April.

Tonight, UK supermarket chain Sainsbury’s is due to provide a trading update tonight.

In overnight corporate news, major vehicle manufacturers reported US June sales. General Motors revealed 5% fewer sales than a year earlier, while Ford’s sales dropped 13.9% year-on-year. Fiat Chrysler reported a 7% fall.

Expectations were comparatively low however, and General Motors and Ford shares were pushed 1.8% and 3.3% higher respectively.

Asian-headquartered manufacturers fared better with sales, Toyota unveiling a 2.1% rise, buoyed by RAV4 demand. Nissan also claimed a 2% gain, supported by ‘crossover’ sales together with SUV interest. Honda reported a 0.8% improvement.