Local Markets Commentary

The Australian market opens Friday trade on positive commodities leads ahead of key data out of China.

Major international equities mostly fell overnight, however.

China’s December trade figures are anticipated 1pm AEDST.

In overnight commodities trade, gold, oil and iron ore continued higher. Copper swung positive and rallied.

Nickel stocks could experience pressure, due to Indonesia’s plans to ease an ore export curb.

The $A maintained gains after reaching US75.0c yesterday evening.

Overseas Market Commentary

Major European and US equities markets mostly settled lower overnight, finance, tech and biotech sentiment compromised.

In the US, weekly new unemployment claims rose 10,000 but the four weekly moving average fell by 1750.

Import prices rose 1.8% year-on-year, the most in ~five years, boosted by a 0.4% monthly increase in turn inflated by a 7.9% gain for petroleum products.

The national deficit reached $US28B in December, on a 9% drop in the value of receipts against a 5% fall for outlays, compared with December 2015.

European Central Bank (ECB) December policy meeting minutes revealed discussion surrounding increasing political uncertainty and the need for supportive action, at least through 2017.

Euro zone November industrial production was reported 3.2% higher.

In Germany, the national statistics office estimated 1.9% 2016 GDP growth, even while a final December quarter figure is being finalised for release in February.

Imports were reported to have risen 3.4% and exports 2.4%, household spending 2%, and government spending, boosted by asylum seeker costs, 4.2%.

Tonight in the US, December retail sales and producer prices, November business inventories, and a consumer sentiment reading are due.

Bank of America, BlackRock, JP Morgan Chase and Wells Fargo are among those expected to report earnings.

In overnight corporate news, Fiat Chrysler dropped as much as 18% after being accused by the US Department of Justice of failing to disclose diesel-fuelled vehicles were fitted with emissions software.

UK department store Marks & Spencer reported better-than-anticipated Christmas season sales and supermarket chain Tesco a 1.5% rise in like-for-like sales for the November quarter.