Local Markets Commentary

The Australian market opens Friday trade on mixed commodities and positive international equities leads.

In overnight commodities trade, gold fell. WTI crude settled a little lower and LME copper a little higher. Iron ore (62% Fe, China port) traded above $US80/t again.

The $A fell ~US0.5c after trading at ~US74.0c yesterday evening.

Locally today, plenty of corporate updates are anticipated, not the least because ANZ, BTT, ELD, IPL and NAB are hosting AGMs.

Overseas Market Commentary

Major European equities markets notably gained in late trade. US equities maintained sufficient financial sector support to close higher.

The $US continued higher, as did bond yields.

In the UK, the Bank of England held a policy meeting and unanimously kept a 0.25% key rate and £435B asset purchase plan. The £ traded as low as $US1.25 as the central bank pulled back its expectations for the rate at which inflation will increase.

US November CPI gained 0.2% for the month, pushing the annual rate to 1.7%.

Weekly new unemployment claims fell by 4000 and the four-week average rose 5250, to 257,750.

An initial December Markit manufacturing PMI was estimated at 54.2, 0.4 higher than the final November reading.

The Philadelphia manufacturing index came in at 21.5, the highest in two years. This came after forecasts of 9.0 following 7.6 for October. The New York (Empire State) index rose 7.5 points to 9.0.

A home builders’ sentiment index rose seven points to 70, defying expectations of little change.

Tonight in the US, November housing starts and building permits are due.

In overnight corporate news, 21st Century Fox confirmed an agreed $14.6B 100% acquisition of UK satellite broadcaster Sky. Fox already holds 39%.

Yahoo! stock suffered after revelations of another, and substantially larger data breach, put at risk Verizon Communications’ $US4.8B offer.

A rumoured near-term agreement on a Kraft Heinz purchase of Mondelez (Oreo, Cadbury, Nabisco, Trident, Philadelphia) propelled Mondelez higher.

Brewer Heineken has offered in the meantime to buy 1900 UK pubs from Punch Taverns.