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Market Opener - 07 Mar 2017

 
Local Markets Commentary

The Australian market commences today’s trade on mostly negative international overnight equities and commodities leads, ahead of a Reserve Bank of Australia (RBA) policy meeting.

In overnight commodities trade, gold settled slightly lower. Copper fell. WTI crude turned a little lower. Iron ore extended Friday’s fall.

The $A fell below US75.90c after rising to US76.05c yesterday evening.

Locally today, the RBA holds its second policy meeting of the year, from which a statement is expected 2.30pm AEDST.

Pre-trade, a construction activity index and weekly consumer sentiment reading are due.

Several high-profile stocks also trade ex-dividend today, including: BKL, MPL, QAN, QUB, RHC, RRL, SHL and SHV.

A foreign reserves update is expected from China 2pm AEDST. February trade figures are anticipated tomorrow.

Overseas Market Commentary

Major European and US equities markets headed lower on opening overnight, amid geopolitical uncertainty plus reactions to China’s latest announcement to reduce coal and steel production and large-cap corporate sector activity.

North Korea’s missile activity had unsettled earlier yesterday.

In the US, a new, 16 March-effective, 90-day select travel ban to the US was signed by the president, adding to concerns for those questioning the president’s focus on proposed fiscal reform.

In France, pre-national election candidate concerns continued to weigh.

In data releases, US January factory orders were reported 1.2% higher, following a 1.3% rise in December.

Greece reported a 1.2% December quarter GDP drop.

Tonight in the US, January trade and consumer credit figures are due.

Elsewhere, the OECD publishes a G7 outlook report.

In overnight corporate news, Deutsche Bank’s plans to raise capital and restructure, announced Sunday, appeared to adversely impact broader financial sector sentiment.

Earlier, Peugeot Group (PSA) had revealed it was acquiring Opel and Vauxhall from General Motors for €1.3B.

In addition, Peugeot and BNP Paribas announced a €900M proposed purchase of General Motors’ European financial business.

General Motors suffered after revealing it would book a $US4B impairment.

 
7/03/2017 6:49:46 AM

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