Local Markets Commentary

The Australian market opens today’s trade on mixed leads amid a plethora of commentary on likely international trade relationships.

In overnight commodities trade, gold rallied. Oil swung lower. Copper traded decidedly higher. Iron ore (China port) rallied, but in quiet trade, ahead of Lunar New Year, which commences late-week.

The $A was pushed to ~US75.75c after trading at ~US75.55c yesterday evening, and appreciated further this morning.

Locally today, a weekly consumer sentiment index is due pre-trade and the Conference Board monthly leading index later in the morning.

The ASX will not trade Thursday, due to Australia Day.

Overseas Market Commentary

Major European equities markets swung decidedly red overnight, while key US indices trade vacillated before settling a little lower. The $US was pushed to ~seven-week lows.

In the meantime, the US officially withdrew from the Trans-Pacific Partnership (TPP) trade agreement.

The UK and China confirmed plans for the UK PM to visit China for trade talks ‘relatively soon’ after this week’s discussions with the US.

European Central Bank (ECB) president Mario Draghi cited history while promoting European unity, and international co-operation in general, while receiving an award in Italy.

In data releases, the European Commission reported euro zone consumer confidence had risen from -5.1 to -4.9, the most positive reading since April 2015.

Tonight in the US, existing home sales, a regional manufacturing index and an initial January Markit manufacturing PMI are due.

Alcoa, Alibaba, Johnson & Johnson, Lockheed Martin, Philips Electronics, Samsung, and Verizon are expected to report earnings.

In overnight corporate news, McDonald’s results ultimately disappointed, all-day breakfast apparently eating away at other sales. Overall quarterly (+2.7%) and 2016 sales grew, but US like-for-like December quarter revenue slipped 1.3% year-on-year.

Halliburton reported a 21% drop in revenue, outdoing forecasts which had nonetheless pointed to a significant fall.