Local Markets Commentary

The Australian market commences Tuesday trade ahead of another manufacturing PMI for China and an RBA policy announcement, and on mixed US equities and commodities leads.

In overnight commodities trade, US gold futures and WTI crude traded at three- and four-week lows respectively. Comex copper rallied. The London Metals Exchange did not trade overnight, and nor did China yesterday, due to public holidays.

The $A gained after trading at US75.05c yesterday evening.

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

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

Regionally today, Caixin releases an April manufacturing PMI for China 11.45am AEST and Nikkei a services PMI for Japan at 10.30am.

Pre-ASX trade, the Bank of Japan (BoJ) releases April policy meeting minutes. At 10.20am, BoJ governor Haruhiko Kuroda is scheduled to speak publicly.

Japan’s markets will be closed tomorrow through Friday due to public holidays.

Overseas Market Commentary

US equities markets were largely influenced by sub-forecast domestic data and variable corporate sentiment overnight, the DJIA chopping and swinging through trade, and the S&P 500 and NASDAQ heading higher on comparatively smooth trajectories.

UK and major western European markets remained closed due to public holidays.

The ISM’s US April manufacturing index fell 2.4 to 54.8, but the reading represented retained strength and an eighth consecutive month of expansion. Markit’s final April manufacturing PMI slipped 0.5 to 52.8.

March construction spending also fell, by 0.2% following a 1.8% rise in February and predictions of a further 0.5% gain.

Personal income and spending also disappointed, income rising 0.2% but spending coming in flat.

The March year-on-year core PCE deflator slipped 0.2% for the month to 1.6%.

In US administrative developments, late-weekend, Congress heads had approved a $US1 trillion funding bill covering government commitments through to the end of September, after initially ensuring funding for just this week. The proposed legislation requires approval votes in both houses of parliament by the end of the week.

Meanwhile, the US treasury secretary predicted 3% national GDP growth within two years, and the president flagged an investigation into splitting consumer and investment banking.

Tonight in the US, the Federal Reserve commences a two-day policy meeting from which outcomes will be known early Thursday AEST.

ISM’s New York April business activity index and April vehicle sales are also due tonight.

Apple, Archer-Daniels Midland, BP, ConocoPhillips, Kraft Heinz, Mastercard, Merck, Pfizer and Shire are among companies due to report earnings or provide a trading update.

In overnight corporate news, Twitter appreciated 6%, following last week’s pleasing results, with expectations the company with stream news in a partnership with Bloomberg.

21st Century Fox’s news division lost its second senior executive in less than a year, following the departure of a drawcard presenter last month.