Local Markets Commentary

Cautious Australian trade is expected to continue today, pending no major events.

US and UK equities and commodities markets are providing no official leads due to Monday public holidays, China observes a second consecutive public holiday today, and influential domestic and international data releases are anticipated from mid-week.

Locally today, April building approvals are due 11.30am AEST. Pre-trade, a weekly consumer sentiment reading will be published.

Regionally, Japan releases several April economic indicators, including trade balance, employment, retail sales and household spending, from 9.30am AEST.

In limited electronic overnight commodities trade, oil prices vacillated, ultimately trending a little lower. US gold futures shifted slightly lower.

The $A essentially trod water in thin currency trade, after approaching US74.40c early yesterday evening.

China’s markets will remain closed today due to a public holiday.

Overseas Market Commentary

Mainland European equities markets produced varying settlements following choppy, thin overnight trade.

US and UK markets did not trade due to public holidays.

European Central Bank (ECB) president Mario Draghi again resisted calls to tighten monetary policy, conceding to a European Parliament economic committee that a wider range of economic indicators had improved.

Putting paid to any expectations for next week’s policy meeting, Mr Draghi repeated that low underlying inflation and minimal wages growth in particular still risked sustainable regional progress.

In the UK, the PM and opposition leader fought to adequately respond to questioning in a live prime-time television audience encounter ahead of the 8 June (Thursday next week) national election.

The ruling party, in the thick of EU separation discussions, last week lost a significant lead, in part due to poorly-received domestic social policy, which was then reversed.

Meanwhile, Greece called for definitive decisions on potential debt relief for the nation at the June euro zone finance ministers meeting. Last week, creditors could not agree on a date for the release of further support funds, despite Greek parliamentary approval of new negotiated tax and pension changes.

In Italy, reports increased regarding the potential for an early election.

Elsewhere, general political geopolitical tensions continued, France and Russia agreeing to disagree on some points following a meeting in Paris between the leaders of the two nations.

For its part, China denounced G7 commentary on territorial rights in the South China Sea, and Japan officially objected to another North Korean missile test.

Tonight in the US, April personal income and spending, a Texas region manufacturing index, May house price index and consumer confidence reading are due.

In the UK, Ryanair reports full-year earnings.