Local Markets Commentary

The Australian market opens Friday trade on positive US equities and mixed commodities leads, ahead of influential US data tonight, and some expected positioning prior to Monday public holiday weekends in China, the US and UK.

In overnight commodities trade, oil dropped. US gold futures reversed the previous session’s decline. LME copper swung higher. Iron ore (China port, 62% Fe) continued to pull back but remained above $US60/t.

The $A fell further after slipping below US74.65c yesterday evening.

Regionally today, Japan’s April CPI is expected 9.30am AEST.

A G7 leaders’ summit commences in Taormina, Sicily later today and continues through Saturday.

Also over the weekend, China is expected to release April industrial profits.

Overseas Market Commentary

US equities markets again gained on opening overnight, the NASDAQ exchange and NYSE’s S&P 500 index each achieving record peak settlements. These were in part supported by corporate results and assessments.

Major European equities markets chopped and swung.

In the UK, March quarter GDP growth was revised to 0.2% from the initial 0.3% estimate.

US data releases included the April trade deficit, which was calculated 3.8% higher for the month, at $US67.6B.

Wholesale inventories fell 0.3% following forecasts of a 0.2% rise.

Weekly new unemployment claims rose by 1000, less than anticipated.

Tonight in the US, the second of three March quarter GDP growth readings is keenly anticipated, as are April durable goods orders. A final May consumer sentiment reading from the University of Michigan is also due.

In overnight corporate news, US retailer Best Buy exceeded quarterly profit expectations, so much so that the stock was pushed ~21% higher.

Amazon stock was pushed yet higher, to as much as $US998.

Netflix benefited 3% following positive research.

US and UK markets will be closed Monday due to public holidays.