Local Markets Commentary

The Australian market opens today’s trade on lacklustre international equities and mixed commodities leads.

In overnight commodities trade, WTI crude and US gold futures extended Friday’s gains. Copper continued to drop.

The $A traded sub-US72.5c after slipping below ~US73.0c early yesterday evening.

Locally today, the Reserve Bank of Australia (RBA) publishes the minutes of its 6 December policy meeting 11.30am AEDST.

A weekly consumer sentiment reading is due pre-trade.

In Japan, the Bank of Japan announces outcomes from its policy meeting.

Overseas Market Commentary

Choppy and/or vacillating trade featured across major European and US equities markets overnight in noticeably lighter trade and amid geopolitical concerns following deadly attacks in Turkey and Germany.

Broader European banking sector angst also appeared to resurface on new speculation regarding Italy’s Monte dei Paschi di Siena.

In data releases, Germany’s IFO business climate, conditions and expectations indices generally held or edged higher

Markit’s US preliminary services PMI was reported at 53.4, against expectations of 55.2 and following a 54.6 final November reading.

Federal Reserve chair Janet Yellen delivered a commencement address at the University of Baltimore, emphasising the speed of technological change, the strongest domestic labour market in years and the impact of globalisation on jobs markets.

Meanwhile, a French court determined International Monetary Fund (IMF) MD Christine Lagarde negligent when, as the nation’s finance minister, she did not review a 2008 dispute settlement payment from a part State-owned bank to a businessman.

Tonight in the US, no major economic reports are scheduled for release, but existing home sales tomorrow, a final September quarter GDP reading and durable goods orders Thursday, and new home sales Friday will garner interest through the week.

Nike is among companies listed to report earnings.

The manufacturing sector featured in overnight corporate news.

General Motors announced the company was reducing production across four US manufacturing facilities, in response to weaker demand.

Boeing said a commercial jet manufacturing pullback could force the group into compulsory layoffs if voluntary redundancies proved insufficient.

High-profile US investor Carl Icahn announced he was selling American Railcar.