Local Markets Commentary

The Australian market commences mid-week trade on no US equities leads due to the 4 July public holiday.

Key commodities leads are weak at best. In overnight trade, US gold futures turned higher. Oil settled barely changed. LME copper continued lower. Iron ore fell.

Among today’s domestic data releases, AiG is due to release its June services sector activity index pre-trade. June vehicle sales are also anticipated today.

Regionally, Caixin is expected to publish its final June services and composite PMIs for China 11.45am AEST.

The $A again traded in a narrow band after slipping below US76.0c early yesterday evening. The $A initially dropped in the hour immediately following the RBA’s post-policy meeting statement.

Overseas Market Commentary

Overnight, major European equities markets traded lower overnight, vacillating on corporate news, swinging commodities prices and international geopolitical jostling.

US equities markets did not trade, due to the Independence Day holiday.

In new data releases, the UK’s 54.8 June construction PMI represented a 1.2 slip from May.

Euro zone May producer prices were reported 3.3% higher year-on-year, following a 4.3% gain in April.

Tonight in the US, the Federal Reserve publishes the minutes of its June policy meeting.

ISM’s New York business activity index is also due, together with an economic optimism report and final May factory orders.

Meanwhile, finance minister and other forums are underway, ahead of the G20 leaders’ summit scheduled for Friday and Saturday in Hamburg. The heads of China and South Korea will also meet later today with host, German chancellor Angela Merkel.

In overnight corporate news, a pickup in sales for UK supermarket chain Sainsbury’s was attributed to select demand due to warmer-than-average weather.

JP Morgan and tech company Vantiv were reported to be competing to acquire UK payments specialist Worldpay, which was pushed almost 30% higher.

Spain’s Banco Santander suffered on a €7.1B rights issue designed to support the acquisition of Banco Popular, which is otherwise deemed to ‘fail’.

Meanwhile, the Italian Government officially took over Banca Monte dei Paschi di Siena with a $US6.1b injection.