Local Markets Commentary

The Australian market is likely again to prove mostly influenced by a blast of domestic corporate reports, large-cap stocks trading ex-dividend, and some local data.

International overnight commodities and equities leads are largely uninspiring.

In commodities trade, US gold futures settled little changed, but rose again in post-settlement electronic trade. Oil and iron ore turned lower. Copper continued to pull back.

The $A regained ground after trading briefly beyond ~US77.05c yesterday evening.

Locally today, December quarter private capital spending is due from the ABS 11.30am AEDST.

Several high-profile stocks trade ex-dividend today, including: AGL, GWA, JBH, MIN and RIO. Please see p3 for a detailed list.

Overseas Market Commentary

Vacillating trade featured across a majority of major European and US equities markets overnight.

US Federal Reserve February policy meeting minutes indicated the majority of committee members favoured a sooner—rather-than-later rate rise. The notes also expressed concern that expectations of better corporate returns, due to promised lower business taxes, may not materialise, at least in the short-term.

January existing home sales were reported 3.3% higher at a 10-year high.

Both the euro and British pound were trading lower against the $US before US trade and the afternoon release of the Federal Reserve policy meeting minutes.

Euro zone January CPI was confirmed to have pulled back 0.8% during January, and at a 1.8% annual rate, against 0.5% December growth.

Meanwhile, the European Commission bemoaned both Germany’s current account surplus and Italy’s public debt.

A revised UK December quarter GDP growth estimate came in 0.1% higher than an initial reading, at 0.7% for the quarter, and 2% year-on-year.

Tonight in the US, weekly new unemployment claims are due, together with the Chicago Fed national activity index, house prices, a services sector PMI and a regional manufacturing index.

AXA, BAE Systems, Baidu, Barclays, Gap, Glencore, Kohl’s and Nordstrom are among companies expected to report earnings later today and tonight.

Rio Tinto and GlaxoSmithKline are among companies trading ex-dividend on the FTSE 100.

In overnight corporate news, Chevron was reported to be finalising a deal to sell Bangladesh gas field assets to Zhenhua Oil for ~$US2B.

Lloyds and Telefonica results pleased during European trade.