Local Markets Commentary

Australian market investors are facing another swag of corporate earnings and further Reserve Bank of Australia commentary, on mixed commodities and lacklustre equities leads.

In overnight commodities trade, gold rallied. Oil turned higher. Copper and other key base metals dropped. Iron ore fell, picking up the pace of the current pullback.

The $A appreciated further after trading above US76.95c early yesterday evening.

Locally today, RBA governor Philip Lowe is meeting with a parliamentary economics committee as scheduled twice a year.

AMC, CPU and EVN are among stocks trading ex-dividend today. Please see p4 for a detailed list.

Overseas Market Commentary

Major European equities markets notably fell in late trade. Key US indices reacted to data, earnings reports and promises of ‘millions of jobs’, tax cuts and less onerous business regulation from the US administration.

US Treasury head Steven Mnuchin said he wanted some tax change legislated before parliament’s summer recession, but that this would likely not benefit the national economy until late-2018.

Mr Mnuchin also cast doubts on border tax plans touted by the president and opposed by importers.

Germany reported a €23.7B 2016 budget surplus, the federal government share amounting to €7.7B.

December quarter GDP growth was confirmed at 0.4%. A consumer sentiment reading bucked the recent trend, declining a little and coming in short of forecasts.

US weekly new unemployment claims rose by 6000, more than forecast, but the four-week moving average fell by 4000.

A December house price index was reported 6.2% higher, following a 6.1% appreciation for November.

Tonight in the US, January new home sales are due, together with the University of Michigan’s final February consumer sentiment reading.

Foot Locker, JC Penney, Royal Bank of Scotland (RBS) and Standard Chartered are among companies expected to report earnings later today and tonight.

In overnight corporate news, Barclays announced a swing to a full-year profit (£1.6B), supported by reduced penalties and litigation, plus improved investment banking business. Overall revenue fell 3%, however, and additional provisions were allocated for further litigation and potential penalties.

Tesla dented tech sentiment, reporting a larger December quarter loss, despite increased sales and 88.4% higher, $US2.3B revenue.

Large-caps including Rio Tinto and GlaxoSmithKline impacted FTSE 100 trade, trading ex-dividend.