Local Markets Commentary

The Australian market opens on mostly positive international equities and commodities leads.

Locally today, the Reserve Bank of Australia (RBA) holds its final policy meeting of the year and will release a statement 2.30pm AEDST.

Pre-trade, a weekly consumer sentiment reading is due. The ABS reports September quarter current account statistics 11.30am.

In overnight commodities trade, US gold futures turned settled slightly lower. Oil closed a little higher. Copper traded sharply higher. Iron ore turned positive again.

The $A was pushed to ~US74.70c after falling below ~US74.35c yesterday evening.

Meanwhile, China and Russia have voted down a UN proposal for a seven-day truce in Aleppo, Syria.

Overseas Market Commentary

Major European and US equities markets each traded higher overnight on encouraging economic data amid plenty else to consider.

The $US dropped, oil price gains moderated further, and a new, possibly anti-euro zone government was contemplated in Italy, after a ‘no’ vote on a referendum that would have enabled reforms in line with European Union requirements.

In the UK Supreme Court, the government’s appeal hearing commenced, regarding the court decision to secure a parliamentary vote before implementing UK-European separation plans.

In the US in particular, the financial sector returned to favour.

In US data releases, ISM’s non-manufacturing index measured 57.2, representing a 2.4 point gain within a month.

Euro zone October retail sales jumped 2.4% year-on-year, following forecasts of a 1.7% improvement. A services PMI dipped 0.3, but to a nonetheless comparatively robust 53.8.

Across in the UK, the services sector activity index rose 0.7 to 55.2 against expectations of a 0.5 pullback.

Bank of England governor Mark Carney warned of the growing gap between the haves and have-nots and its threat to the benefits of open international trade.

Tonight in the US, trade balance, factory orders and an economic optimism report are due.

Overnight in corporate news, Ford revealed plans for $US2B worth of debt finance.