Local Markets Commentary

The Australian market commences Friday trade ahead of a key Reserve Bank of Australia (RBA) report and on mostly negative US equities leads.

Overnight commodities leads are mixed.

Oil swung lower again, following a single-session gain. US gold futures pulled back for a second consecutive session. Iron ore turned to settle higher. LME copper settled flat.

The $A was pushed to ~US79.50c, after trading at ~US79.30c early yesterday evening, and has risen further this morning.

Locally today, the RBA publishes its quarterly monetary policy statement, including updated CPI and GDP forecasts, at 11.30am AEST.

June retail sales are also due then.

Overseas Market Commentary

Choppy trade featured across most major European and US equities markets overnight amid plenty of mixed corporate news and a new US political development.

The FTSE 100 stood out, gaining on a Bank of England (BoE) dousing of any near-term rate rise expectations, amid claims businesses were delaying investment and market expansion on uncertainty regarding UK-EU separation outcomes.

The post-policy meeting statement and remarks, plus a 0.2% lower 2017 GDP growth forecast of 0.7%, also pushed the British pound significantly lower against the $US.

Two of eight policy committee members had nevertheless voted for a 0.25% base rate rise from 0.25%, and governor Mark Carney warned rates would rise faster than anticipated when the moves began.

Meanwhile, a Special Counsel-led investigation into last year’s US presidential election has decided on a grand jury route.

In US data releases, ISM’s July services sector activity index dropped 3.4 points to 53.9, three points below forecasts, but nonetheless remained in solid expansion mode.

June factory orders jumped 3%, following a 0.8% fall in May.

Weekly new unemployment claims were reported 5000 lower and the four-week average to have eased by 2500.

Tonight in the US, official national monthly employment statistics are due, together with June trade figures.

Alliance, Asics, Inpex, Isuzu, Merlin Entertainments, Royal Bank of Scotland and Toyota Motor are among companies scheduled to report earnings today or tonight.

In overnight corporate news, Germany’s Siemens fell early on a weaker-than-expected quarterly report plus a delay in plans to separately list one division. Tesla, which reported a better-than-feared loss post-US trade Wednesday, appreciated more than 6% on income expectations for the company’s new electric vehicle.