Local Markets Commentary

The Australian market opens ahead of key local data and two central bank policy statements, one today and the other tonight.

Overnight, the $A approached US79.55c, after trading at US79.35c early yesterday evening. The appreciation has continued this morning.

International equities activity demonstrated select improved appetite. Commodities trade proved mixed.

Oil continued to rally, as did iron ore (China port 62% Fe), which surpassed $US70/t. US gold futures settled virtually flat. LME copper, nickel and aluminium turned lower.

Locally today, the Australian Bureau of Statistics (ABS) releases June employment data 11.30am AEST.

Also today, NAB publishes a June quarter business report based on monthly surveys. The Reserve Bank of Australia (RBA) reports assets and foreign exchange transactions.

The Bank of Japan announces outcomes from its policy meeting ~1pm AEST.

June trade figures are also due out of Japan this morning, just prior to the ASX open.

Overseas Market Commentary

Trade across major European equities markets vacillated overnight amid a slurry of corporate reports and ahead of the European Central Bank’s (ECB) policy meeting tonight.

Key US indices opened higher and never appeared about to be headed. The S&P 500’s technology index notably recorded a new peak amid a hive of activity.

Among new data releases, US June housing starts rose 8.3%. Building permits were reported 7.4% higher. Each figure surpassed forecasts following falls in May.

Tonight in the US, weekly new unemployment claims are due, together with a regional manufacturing index and leading indicators report.

Across the Atlantic, the European Central Bank (ECB) holds a policy meeting, the outcomes statement and subsequent press conference keenly anticipated for hints of any likely tightening timetable.

Anglo American, eBay, EasyJet, Microsoft, Premier Foods, Snap, Unilever and Visa are among companies scheduled to report earnings or provide trading updates.

In overnight corporate news, Morgan Stanley exceeded expectations with a $US1.76B quarterly profit and $US9.5B revenue.

Qualcomm reported a 40% profit drop, in the absence of Apple Inc patent royalties.

Amazon revealed plans for a new social network, as Facebook and Nielsen launched a new analytics service, evaluating the performance of news stories.

Discovery Communications and Scripps Networks broadcast new merger discussions. These pushed their respective prices 4% and 14% higher and improved general media and entertainment sector sentiment.

Meanwhile, Reckitt Benckiser offloaded its food division to McCormick for a spicy $US4.2B.