Local Markets Commentary

The Australian market commences June trade on mixed overnight commodities and weak equities leads, but ahead of significant regional and domestic data releases.

Caixin is expected to publish its May China manufacturing PMI 11.45am AEST. A final May manufacturing PMI for Japan is due 10.30am.

Locally pre-trade, the national May manufacturing index, as calculated by AiG, will be released.

April retail sales and March quarter private sector capital spending figures are due 11.30am AEST.

An April house price index is also due today, plus the RBA’s commodity price index post-trade.

Meanwhile, CSR, KMD and TNE trade ex-dividend.

In overnight commodities trade, oil fell further. US gold futures turned higher. LME copper gained. Iron ore (China, 62% Fe) fell in its first trading session for the week.

The $A was pushed lower after rising beyond ~US74.60c yesterday evening.

Overseas Market Commentary

Vacillating trade featured across major European and US equities markets, amid political fog in the US and UK and international trade and security alliance disquiet.

Euro zone May CPI growth disappointed those looking for tighter monetary policy, coming in at 1.4% following 1.9% for April.

April unemployment was estimated 0.1% lower for the month, at 9.3%.

Germany’s April retail sales slipped 0.2%, producing a 0.9% year-on-year decline.

Across the channel, UK consumer credit fell £0.1B during April, while a key consumer confidence index rose three points to -5.

The British pound waxed and waned on varying survey results ahead of next Thursday’s national election, including one that indicated the ruling party would lose its parliamentary majority.

In the US, data releases, the Federal Reserve’s region-by-region economic summary revealed growth and business optimism had eased in some regions, but that overall status quo essentially remained, as in minimal inflationary pressure amid modest – moderate growth.

The Chicago PMI was reported 1.4 higher for the month, at 59.4, following forecasts of a fall to 57.

April pending home sales declined 1.3% for the month, against expectations of a 0.5% rise.

Weekly mortgage applications dropped again, this time by 3.4%, attributed to tight supply.

Tonight in the US, private sector employment and job layoff reports are due, ahead of tomorrow night’s official national jobs figures.

ISM’s influential manufacturing index is also due, together with weekly new unemployment claims, April construction spending, May vehicle sales, and Markit’s final May manufacturing index estimate.

Those scheduled to report earnings include Dollar General and Johnson Matthey.

UK department store Marks & Spencer trades ex-dividend on the FTSE 100.

In overnight corporate news, Bank of America and JPMorgan warned of falling trading revenue, bruising financial sector sentiment.

Specialty retailer Michael Kors pulled the S&P 500 lower following a substantial swing to a quarterly loss.