Local Markets Commentary

The Australian market opens this week’s trade on mixed leads, amid public holidays in four States and/or territories, and following a State election result which has been interpreted as adverse for the national government.

In overnight Friday commodities trade, US gold futures settled a little lower. WTI crude continued to fall. LME copper swung higher. Iron ore slipped slightly further Friday but Dalian futures continued definitively lower during the evening.

The $A was pushed past US75.45c after trading at US75.25c early Friday evening.

Locally today, a weekly capital city house price report is due.

The Reserve Bank of Australia (RBA) is also expected to publish a debit and credit card transactions report.

ALU, EQT, LOV and SGM are among high-profile stocks scheduled to trade ex-dividend. Please see p3 for a detailed list.

Regionally, China’s February foreign direct investment figures are expected post-trade.

Overseas Market Commentary

Major European and US equities trade vacillated again overnight Friday, but notably all major indices settled higher.

Mixed data, election (Netherlands and France) commentary and one media report claiming ECB rate rise discussions, featured in Europe.

In the US, February employment report exceeded expectations on the number of jobs created (235,000), supported by an increase in construction and resources sector jobs during a warmer-than-average winter.

The employment rate came in as anticipated (4.7%, down 0.1%) and wages growth a little sub-par (0.2% higher for the month; US6c/hr).

Annual wages growth rose to 2.8% however.

Participation rose 0.1% to 63%.

Meanwhile, the January budget deficit was reported at 3.1% of GDP.

In Germany, January imports rose 3% against a 2.7% gain for exports.

UK January manufacturing output fell 0.4% and industrial production dropped 0.9%.

Tonight in the US, a Federal Reserve labour market conditions index is due, ahead of the much-anticipated two-day policy meeting commencing tomorrow night.