Local Markets Commentary

The Australian market opens Friday trade on mostly unconvincing international equities and mixed commodities leads.

In overnight commodities trade, gold futures turned lower. WTI crude continued to fall. Iron ore swung higher. LME copper continued to gain.

The $A was traded in a narrow range after slipping to ~US76.30c yesterday evening.

Locally today, China’s premier Li Keqiang continues his official visit to Australia.

Regionally this weekend, People’s Bank of China chairman Xiaochuan Zhou is due to speak on trade and monetary policy at the Boao Forum.

Overseas Market Commentary

Choppy, swinging trade featured across most major European and US equities markets overnight, with Germany’s DAX a notable exception.

In the US, the scheduled vote on the repeal of the former administration’s health care legislation (‘affordable care act’) in favour of a new plan (‘American health care act’) was delayed until possibly next week. Insufficient support for the government’s position was reported.

Weekly new unemployment claims rose by 15,000 against forecasts of a 3000 fall.

February new home sales jumped 6.1% for the month.

Federal Reserve chair Janet Yellen spoke publicly, but only on education, work skills and associated research, and not monetary policy or economic outlooks.

Across the Atlantic, the European Central Bank revealed it had lifted the cap for emergency funds available to Greek banks to €46.6B.

In the UK, a Bank of England official warned interest rates could move higher.

In the meantime, UK February retail sales were reported 1.4% higher for the month and 3.7% year-on-year. Volumes fell by 1.4% for the three months to the end of February, however.

February vehicle production was reported at a 17-year peak.

Tonight in the US, February durable orders and Markit PMIs are due.

Sinopec is due to report results later today.

In overnight corporate news, Ford Motor Co warned its March quarter result would be adversely impacted by a mix of factors, including higher costs and unfavourable forex.