Local Markets Commentary

The Australian market commences Friday trade amid a package of June statistics out of Japan and following generally uninspiring overnight equities leads, ahead of a quarterly US GDP reading tonight, and key data out of China Monday.

In overnight commodities trade, oil continued its latest ascent. Gold futures swung decidedly higher. LME copper settled almost unchanged. Iron ore (China port, 62% Fe) was pushed a little lower but remained above $US70/t.

The $A fell well beneath US80.0c, after slipping from US80.35c below US80.20c early yesterday evening.

Locally today, June quarter producer prices are due, one further consideration ahead of the Reserve Bank of Australia’s (RBA) policy meeting Tuesday next week.

Overseas Market Commentary

Major European and US equities markets were pushed and pulled overnight by a plethora of corporate reports and a sudden tech sector sell-down.

Since close of US trade, a final Senate vote has approved new sanctions for Iran, North Korea and Russia.

The US president holds the right to veto the vote, or to sign and hence officially legislate the proposed sanctions.

Earlier, among US data releases, June durable goods orders were reported 6.5% higher.

Weekly new unemployment claims grew by 10,000, almost twice some forecasts.

The Chicago Fed’s national activity index rose to 0.13 from -0.3, but 0.35 had been predicted.

Earlier, a GfK consumer confidence reading for Germany came in 10.8, up 0.2 for the month, and setting a new record peak.

Tonight in the US, an initial June quarter GDP estimate is keenly anticipated. An employment cost index and the final July University of Michigan consumer sentiment reading are also due.

BNP Paribas, BT, Chevron, Credit Suisse, Exxon Mobil, Hitachi, Hyundai Steel, IAG, Nomura and UBS are among another swag of companies scheduled to report earnings today or tonight.

In overnight corporate news, Deutsche Bank revenue undershot expectations.

In the UK, Lloyds Banking profit disappointed.

Royal Dutch Shell posted another improved result, but claimed the medium-term outlook for oil prices was not as rosy as viewed by some.

AstraZeneca confirmed a proposed new lung cancer treatment had not initially performed as anticipated.

Across the Atlantic, Twitter growth concerned such that shares dropped 13%, but Facebook revenue pushed that stock 3.5% higher.

Verizon Communications appreciated 7.6%, buoyed by revenue which surprised on the upside, supporting general telecom sentiment.

Post-US trade, Amazon has reported a 77% quarterly profit drop, impacted by growth costs and, despite 25% higher June quarter revenue, warned the current quarter could deliver a net operating loss. The company had traded almost 3% higher intra-session but in after-hours trade, began to fall.

Earlier, Samsung Electronics had surpassed all the division’s previous quarterly profit performances.