Local Markets Commentary

Friday Australian market trade will be largely pushed and pulled by negative international equities sentiment, mixed overnight commodity price leads, and domestic corporate results.

In overnight commodities trade, gold picked up the pace in a second consecutive positive session. Oil turned to settle higher. LME copper flipped and fell. Iron ore (China port 62% Fe) swung higher and rallied.

The $A dropped below US78.90c after trading at ~US79.30c early yesterday evening.

Regionally today, China’s July property prices are anticipated 11.0am AEST.

Overseas Market Commentary

Major European and US equities markets fell on or near opening overnight, amid: disappointing reports and data; central bank musings; currency swings; abundant commentary regarding US administration wherewithal to support domestic and international growth; and a deadly civilian attack in a western Europe tourist precinct.

First up, European Central Bank (ECB) July policy meeting minutes revealed concern at euro strength over the past few months, pushing the euro lower in overnight trade.

Meanwhile, a final July CPI reading for the euro zone added to policy complications, coming in at a 0.5% pull back for the month and 1.3% annual rise.

Across in the UK, July retail sales were reported just 0.3% higher for the month and 1.3% higher year-on-year.

In the US, July industrial production rose 0.2% following a 0.4% improvement in June. Manufacturing output slipped 0.1% after a 0.2% June rise.

The Philadelphia Fed business index fell 0.6 to 18.9, although a 1.5-point fall had been anticipated.

Weekly new unemployment claims fell by 12,000 influenced by summer holiday season.

In Barcelona, Spain, a rogue vehicle drove through pedestrians.

Tonight in the US, a University of Michigan consumer sentiment reading is expected.

Companies scheduled to report earnings later today and tonight include Deere, Foot Locker and Lenovo.

In overnight corporate news, Cisco Systems, which had reported post-US trade Wednesday, led tech sector sentiment lower.

Walmart’s quarterly profit slipped, but revenue rose, containing a stock price slip to ~1.5%.

Earlier, Alibaba’s quarterly report exceeded expectations.