Local Markets Commentary

The Australian market opens today amid another avalanche of corporate financial reports.

International equities leads are negative.

In overnight commodities trade, US gold futures climbed. Oil continued higher. Iron ore swung higher. Copper picked up the pace of latest gains.

The $A slipped below US77.0c after the $US picked up in late trade. The $A had traded above ~US77.25c yesterday evening.

Locally today, a leading indicators report is due from Westpac and the Melbourne Institute (10.30am AEST), together with the ABS’s June quarter wage price index (11.30am). A leading employment indicator is also due 2pm.

CBA, DOW, MFG and RMD trade ex-dividend today, also.

Overseas Market Commentary

Major European and US equities markets fell on opening, in stark opposition to the previous session, and with plenty for traders to digest.

Germany’s ZEW economic sentiment index bounced 7.3 points to 0.5.

The euro zone’s trade surplus rose to €29.2B in June, from €24.6B.

In the UK, 0.6% year-on-year July CPI growth was mostly attributed to price rises for fuel, alcohol and accommodation.

July producer prices rose 0.3% year-on-year, representing first annual gain in ~two years.

The reports pushed the British pound off five-week lows against the $US and three-year lows against the euro.

US July CPI was estimated flat for the month. Excluding food and energy prices, the monthly increase came in at just 0.1%, and 2.2% for the year.

July industrial production was reported 0.7% higher for the month, following a 0.4% rise in June.

Housing starts increased 2.1%, the best monthly rate in a year, and 5.6% for the year. Building permits pulled back 0.1%.

In addition, two Federal Reserve officials indicated a September rate rise was possible, but the $US traded at seven-week lows.

Tonight in the US, Federal Reserve July policy meeting minutes are keenly anticipated. Weekly mortgage applications are also due.

Carlsberg, US retailer Lowe’s, Target Corp, Cisco Systems, Staples, Balfour Beatty and ABN AMRO are among companies scheduled to report earnings today and tonight.

Norway’s sovereign wealth fund is also expected to report for the June quarter.

Overnight, Ford announced plans for a commercial release of driverless vehicles within five years.

Key European industrial manufacturer Schindler Holding sounded a full-year warning on a weaker construction market in China and Brazil’s recession. This appeared to hurt general industrial stock sentiment.

US home hardware specialist Home Depot lifted its full-year forecast however.