Local Markets Commentary

The Australian market opens a new week’s trade on lacklustre equities but mostly positive commodities leads.

Over the weekend, G20 finance ministers and central bankers warned against strategic currency devaluations and supported general free trade relationships, rather than declaring as previously, ‘We will resist all forms of protectionism’.

China reported February residential property prices were higher than a year ago in 67 of 70 surveyed cities. Beijing prices rose 24%; Shanghai 25%; Shenzhen 14%.

In addition, China’s vice premier Zhang Gaoli vowed his nation would continue ‘to oppose trade and investment protectionism’ and would work with other countries to do so.

China’s premier Li Keqiang is scheduled to visit Australia this week, for four days commencing Wednesday.

In overnight Friday commodities trade, US gold futures continued a little higher. Oil settled little changed. Copper extended the week’s gains. Iron ore (62%Fe; China port) turned modestly lower.

The $A was pushed past US77.05c after briefly slipping to ~US76.75c Friday evening.

Locally today, Reserve Bank of Australia (RBA) assistant governor (economic) Luci Ellis is speaking at a Canberra event, 12.40pm AEDST.

This morning, weekly capital city house prices are due from CoreLogic and a monthly Conference Board leading indicators report.

Ex-dividend season also continues this week. Please see p3 for a detailed list.

In addition, the March quarterly S&P/ASX indices rebalance takes effect on market open today. Please see p4 for additions and deletions.

Japan’s markets will remain closed today due to a public holiday.

Overseas Market Commentary

Major European and US equities markets struggled to maintain momentum overnight Friday.

In US data releases, February industrial production was reported flat, but manufacturing 0.5% higher, having risen each month for the previous five.

A 97.6 initial March University of Michigan consumer sentiment reading represented a 1.3 point rise on February’s final estimate.

Meanwhile, president Donald Trump appeared to barely engage with Germany’s Chancellor Angela Merkel during official talks in the US.

Yesterday, a presidential representative promised a detailed budget plan from the president in May.

The euro zone reported a January trade deficit despite higher exports.

Tonight in the US, the Chicago Fed national activity index is due.