Local Markets Commentary

The Australian market opens a new week’s trade following commentary from China’s central bank, and on mixed overnight Friday equities and commodities sentiment.

Over the weekend, People’s Bank of China chairman Zhou Xuichuan said the nation’s banking, insurance, investment banking, payments and security firm business could be opened up for additional international investment.

In addition, Zhou declared the government’s debt-to-GDP ratio as ‘not very high’. Earlier, vice finance minister Liu Wei claimed national debt risks were controlled.

China is due to report February industrial profits 12.30pm AEDST.

In overnight Friday commodities trade, US gold futures settled barely changed. WTI crude turned higher and LME copper lower. Iron ore swung lower again.

The $A was pushed a little higher after falling below US76.10c early Friday evening.

Locally today, a weekly capital city residential property price report is due.

Several high-profile stocks trade ex-dividend this week. Please see p3 for a detailed list.

Overseas Market Commentary

Vacillating trade featured across most major European and US equities markets overnight Friday.

During late-US trade, US healthcare legislation designed to replace that introduced during the Obama regime was again not put to the vote, but withdrawn from the House of Representatives, due to reported insufficient support.

Changing the act was a key campaign promise by president Donald Trump and the vote was viewed by some as a litmus test for the likely success of other tax, infrastructure spending and security policy changes, also promoted as priorities by the new president.

In the euro zone, initial March PMI estimates pleased on the upside, prompting speculation the European Central Bank (ECB) would begin to tweak monetary policy this year. A reduction in monthly bond purchases has previously been scheduled to commence in April.

Since then, a weekend State election in Germany has favoured the national ruling party led by Chancellor Angela Merkel, ahead of a national election scheduled for September.

In US data releases, February durable goods orders were reported 1.7% higher, following a 2.3% increase for January. Core orders slipped 0.1%, against expectations of a 1.5% gain.

Markit’s initial March manufacturing PMI fell 0.8 to 53.4, following forecasts of a 0.6-point rise to 54.8.

Tonight in the US, a regional manufacturing index is due.

In weekend corporate news, China-headquartered conglomerate HNA Group is reportedly acquiring, for $US445M, 25% of the US asset management business of UK-based insurer Old Mutual