Local Markets Commentary

Australian market trade opens on negative international equities and mixed commodities leads, ahead of key domestic reports and influential data out of China.

In overnight commodities trade, oil fell. US gold futures settled higher, as did copper. Iron ore dropped.

The $A was pushed ~US1c lower after trading at US75.0c yesterday evening.

Locally today a raft of reports is due, including November employment figures (11.30am AEDST), the Reserve Bank of Australia’s quarterly bulletin (11.30am), industrial trends, consumer inflation expectations and forex reserves.

China is expected to reveal foreign direct investment 1pm AEDST.

Overseas Market Commentary

Major European markets chopped through overnight trade. US equities fell immediately following the Federal Reserve’s rates announcement, soon swung higher, but then headed lower again.

The US Federal Reserve forecast up to three further short-term interest rate rises next year, after raising the rates range 0.50% to 0.75%.

Also in the US, November retail sales growth was reported at 0.1% for the month, sparking lower December quarter GDP forecasts. Annually, sales were 3.8% higher.

Industrial production slipped 0.4%, after rising 0.1% in October and falling for each of August and September.

November producer prices rose 0.4%, even when removing the energy and food components. Services sector prices rose 0.5%. October’s overall index was reported flat.

Earlier in the UK, October unemployment was estimated to have remained at 4.8%, but average earnings to have dropped 2.5% for the October quarter.

Euro zone October industrial production was reported 0.6% higher year-on-year, following forecasts of a 0.8% rise.

Tonight in the US, November CPI, weekly unemployment claims, a home builders’ sentiment index, two regional business conditions indices, an initial December Markit manufacturing PMI and September quarter current account figures are due.

In the UK, the Bank of England holds a policy meeting and announces outcomes.

Adobe Systems, John Wood, Oracle Corp, Petrofac and PZ Cussons are due to report earnings or provide trading updates.

Associated British Foods and United Utilities trade ex-dividend on the FTSE 100.

In overnight commodities trade, Johnson & Johnson and Switzerland’s Actelion announced they could not agree on a propose merger. Actelion’s share price suffered as did European biotech and health sector sentiment.