Local Markets Commentary

Today’s Australian market trade follows overnight gains for major international equities markets.

In commodities trade, Comex gold gained. Oil swung higher and LME copper lower. Iron ore continued to advance.

The $A was propelled beyond US74.5c after trading at ~US73.85c early yesterday evening.

No major economic reports are scheduled for release locally today.

Japan is due to report November trade and early December data.

China’s December trade figures are anticipated tomorrow.

Overseas Market Commentary

Major European equities markets each achieved gains overnight, but dropped in late trade. US bonds and equities trade proved volatile during a much-anticipated media conference with president-elect Donald Trump.

The $US also swung, dropping in second half trade.

In data releases, US weekly mortgage applications rose 5.8%, supported by lower rates.

Across in the UK, November industrial production was reported 2% higher year-on-year, following a 0.9% fall in October. The trade deficit came in at £12.16B against £9.89B.

Bank of England governor Mark Carney told a parliamentary committee that financial risks of the UK leaving the European Union were greater for the continent than domestically. The governor advocated a transition period and some common rules.

Tonight in the US, Federal Reserve chair Janet Yellen and five regional presidents are scheduled to speak publicly. In data releases, weekly new jobless claims and December import prices are due.

In the euro zone, the European Central Bank (ECB) releases the minutes of its December policy meeting.

Delta Airlines and AO World are among those expected to report earnings.

Marks & Spencer and Tesco (UK supermarket chain) are scheduled to provide trading updates.

In overnight corporate news, Volkswagen rose after settling a US Department of Justice diesel emissions investigation by agreeing to pay $US4.3B.

UK supermarket group Sainsbury’s reported record Christmas season sales totalling £1B, representing a 0.1% rise in like-for-like sales against predictions of a 0.8% fall.

A majority of pharmaceuticals and Lockheed Martin suffered variously during US trade, on repeat cost criticism from Mr Trump.