Local Markets Commentary

Australian market trade will today be pushed and pulled by positive overnight international equities leads, and falls for key commodities prices, amid domestic reporting season.

In overnight commodities trade, gold futures eased. Oil fell. Iron ore (China port 62% Fe) and LME copper continued lower.

The $A fell further, after slipping from ~US78.95c to ~US78.75c early yesterday evening.

Locally today, the Reserve Bank of Australia (RBA) publishes August policy meeting minutes.

July new vehicle sales are also due. Pre-trade, a weekly consumer sentiment report will be released.

Overseas Market Commentary

Major European and US equities markets opened higher overnight and never looked headed.

The $US rose, and in the absence of new public verbal US-North Korea threats, broad interest in safe-haven investments slowed.

For its part, China announced bans on the imports of several North Korean products, including coal, iron and seafood.

In addition, Chinese authorities had moved to demonstrably enforce what is considered less speculative commodities futures trade from within domestic firms.

Among scant data releases, euro zone June industrial production was reported 0.6% lower for the month and 2.6% higher year-on-year, following a 1.3% monthly improvement and 4% annual increase in May.

In the US, a review of trade concerns with China was formally commenced, in particular to determine if an investigation is warranted with regards to intellectual property (IP).

Tonight in the US, July retail sales, June business inventories, a home builders’ sentiment index, New York region manufacturing index and import and export prices are due.

A July CPI reading for the UK could impact FTSE trade.

Companies scheduled to report earnings later today and tonight include: Home Depot, Urban Outfitters and Zhaopin.

In overnight corporate news, Chinese online specialist JD.com was pushed ~3.5% lower, reporting 44% higher quarterly revenue, but nonetheless a ¥496M loss.