Local Markets Commentary

The Australian market opens today’s trade on a robust $A, price gains for most key commodities, and ahead of China’s June industrial profits.

In overnight commodities trade, oil continued higher. Iron ore (China port, 62% Fe) extended this week’s rally, trading above $US70/t. LME copper rallied further. US gold futures settled slightly lower again, but have since risen on a $US drop.

The $A was propelled beyond US80.0c, after rising to ~US79.10c by early yesterday evening.

Locally today, June quarter trade prices are due 11.30am AEST.

China is also expected to release June industrial profits 11.30am AEST.

Overseas Market Commentary

Most major European and US equities markets opened higher overnight, largely also looking never to be headed.

Investors considered a swag of corporate reports ahead of, and beyond, the US Federal Reserve post-policy meeting statement.

The statement was interpreted as indicating the central bank could conditionally begin selling some of its $US4.5 trillion worth of assets well before year’s end.

Soft inflation was again noted, but without fear for the US economy.

In US data releases, June new home sales were reported 9% higher than a year ago.

Weekly mortgage applications rose just 0.4%, new mortgages falling 2.2%, but refinancing increasing by 3.4%, buoyed by a rates fall.

Earlier, the UK reported 0.3% June quarter GDP growth, in an initial estimate representing a 1.7% annual rise. March quarter GDP grew 0.2%, and 2.0% on an annual basis.

Tonight in the US, weekly new unemployment claims are due, together with durable goods orders, the Chicago Fed’s national activity index, wholesale inventories, a trade balance update and regional manufacturing index.

Anglo American, AstraZeneca, Baidu, Barclays, Deutsche Bank, Fiat Chrysler, Fujitsu, Glencore, Hitachi, Intel, Kia Motors, LG Electronics, Lloyds, Nestle, Nissan Motor, Royal Dutch Shell, Samsung Electronics, Singapore Airlines, Sky, Starbucks, Twitter and Volkswagen are among a plethora of companies scheduled to report earnings today or tonight.

In overnight corporate news, Boeing was pushed almost 10% higher following a pleasing quarterly profit, despite a larger-than-anticipated 8% revenue drop.

Coca-Cola also reported upside earnings and a forex-impacted revenue fall, but was traded 1% higher.

Amazon traded at a new record peak while Facebook booked a 71% profit jump.

Ford’s quarterly results exceeded expectations but the stock rolled 2% lower.

AT&T reported almost on-par and rose 5%.