Local Markets Commentary

The Australian market commences Friday trade on lacklustre equities and mixed commodities leads.

In overnight commodities trade, gold continued lower. Oil swung higher and rallied. Copper fell. Iron ore gained.

The $A dropped below US75.40c after trading at ~US75.60c early yesterday evening.

Locally today, December quarter producer prices, plus export and import prices, are due 11.30am AEDST.

A swag of December quarter reports is also anticipated as the end-of-month deadline approaches.

Japan is due to report December CPI 10.30am AEDST.

China’s markets are closed today (Lunar NYE) and Monday through Thursday next week (Spring Festival holiday season).

Overseas Market Commentary

Choppy trade featured across major European and US equities markets overnight, amid a plethora of high-profile company earnings reports.

In US data releases, December new home sales dropped 10.4% for the month.

Weekly new unemployment claims rose 22,000, but the four-week moving average fell 2000.

In the UK, December quarter GDP growth, was reported at 0.6%. For 2016, UK GDP rose 2.0%, the most of any G7 economy.

Tonight in the US, an initial December quarter GDP estimate is keenly anticipated.

December durable goods orders and a final January reading for the University of Michigan consumer sentiment index are also due.

In addition, UK PM Theresa May will continue her trade visit to the US.

American Airlines, BT Group, Chevron, Colgate-Palmolive, Honeywell and UBS are expected to report earnings.

In overnight corporate news, Johnson & Johnson revealed it had agreed to pay $US30B cash (US$280 per share) for biotech firm Actelion.

Ford Motor Co suffered after reporting a December quarter loss, and Caterpillar after recording 13% lower revenue and issuing sales warning.