Local Markets Commentary

The Australian market commences last-day-of-the-month trade on negative international equities and mixed commodities leads, ahead of a swag of domestic and regional data, and amid a plethora of corporate reports.

In overnight commodities trade, gold swung higher. Oil continued lower. Copper turned and fell.

The $A was pushed past US75.55c, after slipping below US75.45c yesterday evening.

Locally today, a rush of December quarter reports is expected due to the end-of-month deadline.

Pre-trade, a weekly consumer sentiment report is due.

The Reserve Bank of Australia (RBA) releases financial aggregates, including private sector credit 11.30am AEDST.

NAB is due to publish its monthly business survey report at the same time.

The RBA will release assets and foreign currency liquidity post-trade.

In Japan, December industrial production, workforce figures and household spending are due, together with several other December economic indicators.

The Bank of Japan is also expected to announce outcomes of its monetary policy meeting.

China is due to publish official January PMIs tomorrow. The nation’s markets are closed through Thursday due to the Spring Festival holiday season.

Overseas Market Commentary

Major European and US equities markets fell on opening overnight, amid uncertainty and debate regarding the extent and likely impact of US exclusionist and protectionist policy.

In the meantime, US president Donald Trump signed an order for government departments to nominate two business regulations to be removed for each new one established.

1.9% January German CPI year-on-year growth, following 1.7% for December, pushed bond yields higher.

In US data releases, December personal income and spending figures supported an upward revision of December quarter GDP growth, for which the headline rate had disappointed Friday.

Income rose 0.3% for the month, and 3.5% over 2016, against 4.4% in 2015. A 0.5% improvement in spending pushed overall 2016 spending to a 3.8% gain, against 3.5% in 2015.

December pending home sales rose 1.6% following a 2.8% fall for November.

A Texas region manufacturing index rose by 4.4 to 22.1, supported by orders and representing the best result since April 2010.

Tonight in the US, employment costs, house prices, another regional manufacturing index and consumer confidence reading are due.

Apple, Eli Lilly, Exxon Mobil, MasterCard, Nomura, Pfizer and Xero are among companies scheduled to report earnings.