Local Markets Commentary

The Australian market commences today’s trade on strong overnight international equities leads.

Locally however, several large-cap stocks trade ex-dividend, including BEN, FMG, LLC, NHF, PGH, WOW and WPL.

Also locally today, January trade figures and building approvals are due 11.30am AEDST.

The OECD is expected to release the Australia component report from its latest economic survey at ~1pm.

In overnight commodities trade, US gold futures and oil continued modestly lower. LME copper rallied. Iron ore (China port, 62% Fe) settled effectively flat.

The $A traded higher after being pushed above ~US76.60c yesterday evening.

Overseas Market Commentary

Major European and US equities markets rallied on opening and were never headed, buoyed by a confluence of factors, including some encouraging manufacturing figures.

In the US, expectations for a March rate rise firmed on a key Federal Reserve official’s comments, and president Donald Trump placed a $US1B price tag on infrastructure spending.

Further, the president’s immigration policy appeared to have moved towards being more business-friendly

Financial and construction stocks were particularly in favour.

In US data releases, ISM’s well-regarded manufacturing index came in at a robust 57.7, boosted by a 4.7-point rise in new orders to 65.1.

The Fed’s beige book region-by-region economic report revealed ongoing modest-moderate growth and some wages improvement wages in some regions.

January consumer spending rose 0.2%, following a 0.5% improvement in December, and against a 0.4% rise in personal income.

January construction spending fell 1%, defying forecasts of a 0.6% rise.

Weekly mortgage applications rose 5.8%, supported by some lower rates.

A 55.4 euro zone February manufacturing PMI represented an almost six-year high.

In the UK, the February manufacturing PMI fell 1.3 points to a nonetheless strong 54.6.

Meanwhile, the House of Lords voted for an amendment to planned UK-EU separation legislation, potentially.pushing back the commencement of cross-Channel negotiations.

Tonight in the US, weekly new unemployment claims and a job cuts report are due.

AB InBev, Autohome, Costco, JD.com, Merlin Entertainments and Spire Healthcare are among companies listed to report earnings today and tonight.

Barclays trades ex-dividend on the FTSE 100.

In overnight corporate news, vehicle manufacturers reported mixed US January sales.

General Motors’ rose 4.2%, but Ford’s fell 4%.

Among the retailers, Best Buy results disappointed, Lowe’s sufficed, accompanied by expansion plans, and Office Depot’s profit increased 400%.