Local Markets Commentary

Australian market trade is set to react today to September quarter CPI, due 11.30am AEDST.

The Reserve Bank of Australia (RBA) has attached notable significance to this reading in recent comments ahead of its policy meeting Tuesday next week (Melbourne Cup day).

Overnight commodities leads are largely positive, although oil fell. US gold futures swung higher. Copper rallied. Iron ore jumped.

Major equities markets mostly settled lower.

The $A traded in a narrow range after surpassing ~US76.40c yesterday evening.

Overseas Market Commentary

Overnight trade across major European and US equities markets was swayed by central bank commentary, mixed corporate earnings and falling oil.

In Germany, IFO’s business climate index was reported one point higher for the month, at 110.5, a 2.5-year peak.

European Central Bank governor Mario Draghi defended the bank’s policy program in the face of ultra-low inflation, during lecture in Berlin.

Bank of England governor Mark Carney suggested to a parliamentary committee that policy would likely remain steady for some time.

In the US, the Conference Board consumer confidence index fell 4.9 points to 98.6.

Case-Shiller reported 5.1% higher house prices year-on-year.

The Richmond region manufacturing index climbed to -4 from -8.

Tonight in the US, September new home sales, wholesale inventories and a services PMI are due, together with weekly mortgage applications.

Airbus, Angang Steel, Antofagasta, Banco Santander, Boeing, Coca-Cola, Fujitsu, GlaxoSmithKline, Hyundai Motor, LG, Lloyds Banking, Mondelez, Nintendo, Northrop Grumman, Posco, Samsung C&T and Tesla are among companies scheduled to report earnings and/or provide trading updates today and tonight.

Apple reported post-US settlement, so is expected to influence tonight’s trade.

Overnight, General Motors said it had doubled its year-on-year September quarter profit.

Caterpillar disappointed, forecasting approximately flat full-year revenue, below expectations.

Lockheed Martin appreciated more than 7% on both quarterly results and guidance.