Local Markets Commentary

The Australian market will be pushed and pulled by a blizzard of domestic corporate reports, RBA commentary, and a package of releases containing implications for Australia’s GDP growth.

In overnight commodities trade, gold settled a little lower. Oil rose. LME copper eased. Iron ore (China port, 62%) approached $US95/t.

The $A has appreciated considerably after being pushed below ~US76.55c early yesterday evening.

Locally today, RBA governor Philip Lowe has this morning told a forum that lower rates and household debt pose risks.

In data releases, December quarter wage price and construction work figures are due 11.30am AEDST.

The Melbourne Institute and Westpac also publish a January leading economic indices report.

February skilled vacancies are also expected this morning.

Stocks trading ex-dividend today include AMP and CBA.

China is due to report January property prices 12.30am AEDST.

Overseas Market Commentary

Mainland European and US equities sentiment was buoyed overnight by promising data, corporate reports, and commentary supporting a near-term US rate rise.

Euro zone manufacturing and service sector PMIs each exceeded expectations.

Across the channel, the UK public sector borrowed far less in January than forecast, and the monthly budget came in at £9.4B in surplus.

Bank of England governor Mark Carney and fellow central bank warned the UK parliament’s treasury committee economic forecasts could be prone to revision over the near-medium term, as models were insufficient to counter all international risk, including positive and negative outcomes from the UK leaving the European Union.

Tonight in the US, Federal Reserve February policy meeting minutes are keenly anticipated, together with January existing home sales.

AirAsia, Airbus, Bayer, Lloyds, Tesla Motors, Serco and Weibo are among companies expected to report earnings later today and tonight.

In overnight corporate news, BHP Billiton interim results surprised on the upside and HSBC’s 62% annual profit drop on the downside.

In the US, Wal-Mart and Home Depot each exceeded expectations.