Local Markets Commentary

Australian market trade could prove hesitant today, amid a Monday holiday long weekend in the US, and ahead of a week promising high-profile events, influential economic indicators and major earnings reports.

Regionally today, China’s December foreign direct investment figures, expected 1pm AEDST, will attract some attention.

Over the weekend, late-week comments by China’s premier Li Keqiang, acknowledging increased international challenges and pressure, were published on a government website.

In overnight Friday commodities trade, US gold futures slipped a little. Oil turned lower. Copper continued to rally. Iron ore (China port, 62% Fe) prices pulled back. Futures rose again, however.

The $A maintained ~US75.0c after trading at US74.95c Friday evening, but fell early this morning.

Locally today, a monthly inflation report is expected 11am.

Overseas Market Commentary

Major European and US equities markets trade varied overnight Friday, amid key financial earnings reports out of the US, and ahead of a significant week scheduled to include major political events and speeches, central bank pronouncements, influential data, and additional major corporate reports.

In new US data releases, December retail sales were reported 0.6% higher for the month, supported by automobile sales, but following expectations of a 0.7% gain.

The University of Michigan initial January consumer sentiment reading came in at 9.1, against 98.2 for December and forecasts of 98.5.

Producer prices rose 0.3% in December, 1.6% year-on-year.

US equities markets will remain closed tonight, due to Martin Luther King Day. COMEX will trade for a shortened session.

In overnight Friday corporate news, JP Morgan Chase reported an almost 100% increase in December quarter profit, supported by investment activity, and despite retail banking challenges.

Bank of America profit rose 48%, also in part on increased trading, and sweetened the result with a $US1.8B share buy-back.

Wells Fargo earnings undershot expectations, however.