Local Markets Commentary

The Australian market opens mid-week trade on some positive key commodities but negative international equities leads, ahead of major domestic data and updates from large-cap stocks.

Locally today, March quarter GDP figures are keenly anticipated 11.30am AEST, yesterday’s current account statistics and Reserve Bank of Australia (RBA) post-policy meeting economic growth comments adding to the interest.

Pre-trade, a May construction sector activity index is due. Post-trade, the RBA releases reserve assets.

ALQ and JHX trade ex-dividend in the meantime, while GMG, WES and VCX are each providing updates.

In overnight commodities trade, oil swung higher. Gold picked up the pace of its current rally. LME copper continued lower. Iron ore (China port, 62% Fe) turned to rose slightly.

The $A continued higher, beyond US75.0c, after trading at ~US74.85c yesterday evening.

Regionally today, China is expected to release May foreign exchange reserves at ~1pm, ahead of trade figures tomorrow.

Overseas Market Commentary

Disquiet featured across major European and US equities markets, key US indices notably dropping in late trade. Germany’s markets traded for the first time this week.

Among data releases, euro zone April retail sales rose 2.5% year-on-year, following a 2.3% improvement in March.

In the US, a job opportunity report indicated ~260,000 more jobs were available, a record 6.04M in total, but that hiring fell by 253,000. Again, finding people with the right skill for jobs appeared to prove a challenge.

In the UK, polling put the government in front for tomorrow’s national election, but with a reduced majority. FTSE 250 trade again differed significantly from that for the FTSE 100, the lower-cap index dropping ~1.1%.

Tonight in the US, April consumer credit and weekly mortgage applications are due.

In overnight corporate news, US retailer Macy’s issued a margin warning, its stock subsequently tumbling ~8%.