Local Markets Commentary

Australian market trade could be beholden to regional influences today, opening on mixed commodities and relatively lacklustre international equities leads.

In overnight commodities trade, US gold futures turned lower. Oil continued to gain. LME copper slipped slightly. No final iron ore (China port 62% Fe) spot price was recorded, due to a public holiday in Singapore. Dalian futures climbed, however.

The $A appreciated towards US75.85c after being pushed to ~US75.75c early yesterday evening.

Regionally today, China is expected to publish May industrial profits 11.30am AEST.

Premier Li Keqiang is also scheduled to speak publicly at 12.30pm, at an annual World Economic Forum ‘summer’ event hosted in Dalian.

Locally, a weekly consumer sentiment reading is due pre-trade.

This morning, New Zealand has revealed a $NZ3.75B trade deficit for the year to 31 May, against expectations of $NZ3.32B. May imports were valued at $NZ4.85B and exports at $NZ4.95B.

Overseas Market Commentary

Major European and US equities markets again diverged some overnight, the (UK’s) FTSE 100 notably settling higher on a deal enabling the Conservatives to govern with the parliamentary support of the minority Democratic Unionist Party.

Italy’s government supported mainland European sentiment, producing a rabbit enabling ‘good’ assets of two northern Italian banks to transfer to a large retail bank. Friday, the European Central Bank had declared the pair in breach of regulations.

In Germany, IFO calculated business confidence at a record high of 115.1, supported by the expectations and conditions sub-components.

In a set of disappointing US data releases, May durable goods orders fell 1.1% following a 0.9% decline in April.

The May Chicago Fed national activity dropped from 0.57 in April to -0.26.

A June Texas region manufacturing index was reported 2.2 points lower for the month at 15.0.

Tonight in the US, a regional manufacturing, house price and consumer confidence indices are due, together with a US economic review from the International Monetary Fund (IMF).

US Federal Reserve chair Janet Yellen is scheduled to speak publicly in London (5pm UK time), on global economic issues.

Bank of England governor Mark Carney is also due to speak on financial stability.

In Portugal, European Central Bank (ECB) president Mario Draghi is due to speak at the second of a three-day ECB-hosted central bankers’ forum.

In overnight corporate news, Google was reported to be facing a European Union-imposed fine of up to $US1B anytime from later today.