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Market Opener - 07 Jul 2017

 
Local Markets Commentary

The Australian market commences Friday trade amid international geopolitical equivocation, on negative overnight equities trade leads, and ahead of a new employment report for the US tonight.

In overnight commodities trade, oil swung higher. US gold futures continued higher with a meagre gain. LME copper turned to settle slightly higher. Iron ore dropped.

The $A fell below US75.90c after appreciating briefly to US76.10c early yesterday evening.

Locally pre-trade, AiG releases its June construction sector activity index.

A foreign reserves update is expected out of China 1pm AEST, and perhaps foreign direct investment (FDI) over the weekend.

Overseas Market Commentary

Major European and US equities markets headed lower overnight, amid conflicting monetary policy signals and broad geopolitical disquiet.

Ahead of the official commencement of the G20 two-day leaders’ forum in Hamburg later today, US president Donald Trump promoted a ‘severe’ response to North Korea’s missile program.

Among mixed data releases, Germany’s May industrial orders were reported 1% higher for the month, following a 2.2% drop in April.

Across the Atlantic, a private US employment report estimated 158,000 jobs had been added during June, against forecasts of up to 185,000.

Weekly new unemployment claims rose for a third consecutive week.

A June job cuts report estimated 6% fewer planned layoffs compared with May.

A 57.4 services sector activity index from ISM also offered encouragement, 0.9 above forecasts and 0.5 higher than May’s reading.

In another more positive report, the national May trade deficit was estimated 2.3% lower.

Tonight in the US, national monthly employment figures are keenly anticipated.

 
7/07/2017 7:51:48 AM

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