Local Markets Commentary

Generally positive commodities and US equities leads are expected to support Australian market trade today.

In overnight commodities trade, oil and iron ore continued to rally, iron ore surpassing $US60.0/t. US gold futures settled a little higher. LME copper added modestly to Tuesday’s gains.

The $A was propelled towards an eight-month peak of US76.45c after trading beyond ~US75.95c early yesterday evening.

Locally today, a plethora of property and infrastructure stocks trades ex-dividend.

In data releases, May job vacancies and new home sales are due.

Final March quarter current account figures are anticipated out of China, ahead of official services and manufacturing PMIs tomorrow.

Overseas Market Commentary

Major European equities markets continued lower overnight, but key US indices turned and rallied.

Central bank comments and currency swings continued to feature, Bank of England governor Mark Carney confirming UK rates could go higher should business investment sufficiently offset reduced consumer spending.

In the meantime, further reports emerged that key government cabinet members were divided on UK-EU separation plans.

In the US, May pending home sales were reported 0.8% lower for the month, following predictions of a 0.8% rise.

The national trade deficit declined 1.8% during May, to $US65.9B.

Tonight in the US, a third and final March quarter GDP reading is due, together with weekly new unemployment claims.

In Brussels, NATO defence ministers will argue their positions on annual defence spending.

Nike and Walgreens Boots are due to report results.

In overnight corporate news, UK supermarket group Tesco announced plans to cut 1200 head office positions.

Monsanto rose after reporting quarterly results that exceeded expectations.

Post-US trade, the domestic banking sector was reported to have sufficiently satisfied stress testing to be permitted to initiate buy-backs.