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Market Opener - 16 Feb 2017

Local Markets Commentary

High-profile domestic corporate reports will again feature amid today’s Australian market trade, as will workforce data.

Overnight, US equities continued higher.

In commodities trade, US gold futures settled higher and oil a little lower. LME copper swung higher. Iron ore continued to pull back

The $A advanced further after rising above ~US76.85c yesterday evening.

Locally today, the ABS releases its January employment calculations 11.30am AEDST.

The Melbourne Institute also publishes an inflation expectations report.

Overseas Market Commentary

Major European and US equities markets gained overnight, supported by some better-than-expected data and earnings.

US sentiment was also buoyed by a reported presidential assurance to retail CEOs that taxes would be simplified in addition to being lowered.

US Federal Reserve chair Janet Yellen confirmed to a House of Representatives finance committee that holding back on another interest rate rise for too long would be ‘unwise’. Ms Yellen also promoted central bank independence.

January CPI rose 0.6% for the month and 2.5% year-on-year, the fastest annual rate since March 2012.

January retail sales exceeded expectations, improving 0.4% for the month and 5.6% year-on-year.

January manufacturing production rose 0.2%, the same as in December.

Across the Atlantic, December quarter UK wages growth improved 2.6%, following 2.8% growth for the September quarter.

Unemployment remained at 4.8%.

Tonight in the US, weekly new unemployment claims are due, together with January building permits and housing starts, and a regional manufacturing index.

In the euro zone, the European Central Bank (ECB) releases minutes from the 19 January policy meeting.

Coca-Cola HBC, DBS Group, Lenovo, Nestlé and Shire are among companies scheduled to report tonight.

AstraZeneca, BP, Royal Dutch Shell and TUI trade ex-dividend on the FTSE100.

In overnight corporate news, PepsiCo sounded a warning while announcing better-than-anticipated quarterly results and a 7% higher dividend.

In the meantime, US markets are heading towards a Monday public holiday weekend.

16/02/2017 6:48:55 AM

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