Local Markets Commentary

The Australian market commences a new week’s trade ahead of a package of influential data out of China and on mostly positive key commodities leads.

China is due to report June quarter GDP, plus June industrial production, retail sales and fixed asset investment at midday AEST. Property prices are expected tomorrow.

In overnight Friday commodities trade, oil extended its positive run. US gold futures turned decidedly higher. LME copper swung higher. Iron ore pulled back a little.

The $A traded at ~US78.30c, after breaching ~US77.60c early Friday evening.

Locally this morning, a weekly capital city house price report is due.

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

Overseas Market Commentary

Major European and US equities markets trade diverged overnight Friday, as US earnings season warmed, with some encouraging yet mixed intra-group results from high-profile financial stocks.

US data releases largely disappointed, dampening expectations of any further rate rises this year.

June CPI was estimated flat for the month, and 1.6% higher year-on-year following 1.9% for May.

Retail sales slipped another 0.2% after pulling back 0.3% in May.

Industrial production improved 0.4% for the month, following a 0.1% increase for May.

May business inventories rose 0.3% after falling 0.2% in April.

A University of Michigan preliminary July consumer sentiment reading came in at 93.1, down two points from the final June reading.

Tonight in the US, a New York region manufacturing index is due.

Blackrock and Netflix are due to report earnings.

In overnight Friday corporate news, Wells Fargo reported its first quarterly profit rise in seven quarters, but revenue undershot forecasts.

Trading revenue fell at JPMorgan Chase, but lending supported profit, which surpassed expectations.

Citigroup also surprised on the upside, with a 2% rise in revenue to $US17.9B.

In other sectors, Boeing and Walmart benefited from ratings upgrades, Walmart recommended as a ‘buy’ by Goldman Sachs.