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Market Opener - 10 Jul 2017

 
Local Markets Commentary

The Australian market opens a new week’s trade: ahead of influential data out of China; on positive international equities leads; and following falls for key commodities.

China is expected to release June CPI and PPI 11.30 am AEST.

In overnight Friday commodities trade, US gold futures and WTI crude fell. LME copper also declined. Iron ore (China port, 62% Fe) swung higher. 65% iron out of Brazil reported attracted $US80.50/t.

The $A was pushed a little higher after approaching US76.0c early Friday evening.

Locally today, a weekly capital city house price report is due.

Overseas Market Commentary

US equities markets opened higher and were never headed overnight Friday. By contrast, major European indices opened lower or near the previous session’s close and struggled for traction.

Domestic employment figures helped support US trade and the $US.

222,000 jobs were reported to have been created in June, at least 40,000 more than anticipated.

In addition, the April and May totals were revised a total 43,000 higher.

Wages growth continued weak, with a 0.2% rise for the month.

Unemployment rose 0.1%, to 4.4%.

Industrial production in the UK disappointed, May’s output falling 0.2% year-on-year, following a 0.8% drop in April and expectations of a 0.2% improvement. This pushed the British pound lower.

Tonight in the US, May consumer credit figures and a Fed labour market conditions report are due.

The Trump administration’s tax reform plans are expected to attract renewed trade attention after treasury secretary Steve Mnuchin yesterday denounced a media report that higher taxes (up to 40%) on the most wealthy were under consideration in order to cover middle-class tax relief.

Middle East relationships will be in focus, at the start of new Syria peace talks, and following a US-Russia agreement, secured Friday, for a select regional cease-fire.

Meanwhile, Iraq has declared victory over Islamic State in the city of Mosul.

In overnight Friday corporate news, tech stocks returned to favour in the US.

Berkshire Hathaway revealed it was interested in buying the bankrupt Energy Future, and could pay $US9B.

 
10/07/2017 8:05:34 AM

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