Local Markets Commentary

Australian market investors face a flurry of regional and domestic data, and final blast of domestic corporate results, during the last trading day of the month.

In addition, BGA, CGF, GXL, IGA and NCK are among high-profile stocks trading ex-dividend today.

Regionally today, China’s National Bureau of Statistics is expected to publish its annual statistical communique 12.30pm AEDST.

Japan is scheduled to release January industrial production and retail sales figures 10.50am.

Locally today, December quarter balance of payments, government December finance statistics and January financial aggregates, including private sector credit, are due 11.30am.

AiG’s February manufacturing sector activity index is expected 9.30am, at the same time as a weekly consumer sentiment reading.

A December new home sales report is also expected this morning.

Post-trade, the Reserve Bank of Australia (RBA) updates international reserves and foreign exchange liquidity.

In overnight commodities trade, US gold futures settled slightly higher. Oil settled mixed and little changed. LME copper also barely moved. Iron ore turned and rallied.

The $A traded in a narrow band after slipping to ~US76.80c yesterday evening.

Overseas Market Commentary

Major European and US equities markets traded lower on opening again overnight, with key US indices also again recovering.

A batch of euro zone sentiment indices mostly suggested improvements, with consumer confidence a notable exception at -6.2 from -4.8.

January US durable goods orders rose 1.8%, supported by the air industry. Excluding transport sector stocks durable orders slipped 0.2%.

Pending home sales were reported 2.8% lower, mostly attributed to supply falling short of demand in some areas, despite a forecast 0.9% rise.

A 24.5 Texas region manufacturing index surprised on the upside, up 2.4 points and against forecasts of 19.4. Some expect strong petroleum sector support due to particular US administration appointments.

Tonight in the US, president Donald Trump addresses a joint session of Congress.

In addition, a December quarter GDP reading is keenly anticipated, ahead of next month’s Federal Reserve policy meeting. January wholesale inventories, two regional manufacturing indices, a house price index and a consumer confidence reading are also due.

Target, Salesforce and Virgin Money are among companies listed to report earnings.

In overnight corporate news, Tesla suffered from a sell recommendation.