Local Markets Commentary

The Australian market commences mid-week trade ahead of a domestic public holiday (Australia Day) tomorrow.

US equities leads are positive.

In overnight commodities trade, US gold futures turned to settle lower. Oil swung higher. Copper picked up the pace of Monday’s gains. Iron ore continued higher.

The $A appreciated to ~US75.80c after trading at ~US75.60c yesterday evening.

Locally today, December quarter CPI growth is due 11.30am AEDST.

Westpac and the Melbourne Institute are expected to publish their monthly leading economic indices report 10.30am. A skilled vacancies report is also expected, at 11am.

Japan is expected to release December trade figures 10.50am AEDST.

The ASX will not trade tomorrow, due to Australia Day.

China’s markets will be closed from Friday (Lunar NYE) through next week. December industrial profits are anticipated tomorrow.

Overseas Market Commentary

Overnight trade varied across major European and US equities markets, key US indices trading decisively higher amid a swag of high-profile corporate earnings and outlook reports.

In the UK, the Supreme Court dismissed an appeal by the UK government against requiring parliamentary approval to formally trigger the process to separate from the European Union.

The government had intended to commence formal negotiations by the end of March, but the ruling may delay this, should parliament introduce amendments to the government’s separation proposal bill.

In US data releases, December existing home sales fell 2.8% for the month, but rose 0.7% year-on-year.

A 55.1 initial estimate for Markit’s US January manufacturing PMI represented a 0.8 point rise on December’s final reading.

The Richmond Fed PMI was reported at 12, following 8 for December. The Philadelphia Fed services PMI came in at 37.7, against 19.5 for December.

Germany and the overall euro zone’s initial January manufacturing PMIs each rose a little for the month, but the services PMIs declined slightly.

Tonight in the US, a house price index is due.

AT&T, Banco Santander, Boeing, eBay, Freeport McMoRan, Fujitsu, Hyundai Motor, Hyundai Steel, LG Electronics, Novartis, POSCO, Procter & Gamble, Qualcomm , Samsung C&T and United Technologies are expected to report earnings today and tonight.