Local Markets Commentary

The Australian market opens Friday trade on positive international equities leads, ahead of influential US data tonight, and key domestic economic indicators Monday-Tuesday, ahead of Tuesday’s Reserve Bank of Australia policy meeting.

In overnight commodities trade, WTI crude swung to settle slightly higher. US gold futures turned lower. Iron ore continued to fall. LME copper added modestly to Wednesday’s gains. Nickel fell.

The $A dropped below US74.0c after slipping below US74.10c early yesterday evening.

Locally today, the HIA is due to report April new home sales 11am AEST.

Overseas Market Commentary

Major European and US equities markets closed their first session of June trade at or near session highs.

The euro zone’s final May manufacturing PMI was confirmed at a six-year peak of 57, against 56.7 for April.

Italy’s government received EU approval for a financial restructuring plan for Banca Monte Paschi di Siena.

In the UK a 56.7 final May manufacturing PMI, while robust, represented a 0.6-point slip from April’s three-year high.

In the US, a private sector employment report estimated 253,000 jobs were created in May.

ISM’s manufacturing index came in 0.1 higher for the month, at 54.9.

April construction spending fell 1.4%, following forecasts of a 0.5% rise, and against a 1.1% gain in March.

Weekly new unemployment claims rose 13,000 and the four-week moving average by 2500.

Post-US trade, US president Donald Trump officially announced the withdrawal of US support for the 2015 Paris climate agreement, in favour of fresh negotiations, leaving 194 signatories to the initial accord.

Tonight in the US, the national May employment report, April trade figures and ISM’s New York business activity index are due.

In overnight corporate news, US discount chain store Dollar General appreciated almost 7% after doubling the company’s full-year sales growth target following quarterly revenue and profit that each exceeded forecasts.

Deere gained on a proposed €4.6B purchase of German construction equipment manufacturer Wirtgen.

Ford Motor reported 2.2% higher May US vehicle sales and General Motors a 1.3% fall, each defying forecasters on both direction and magnitude terms.