Local Markets Commentary
The Australian market commences a new month’s trade with a Reserve Bank of Australia (RBA) policy meeting, following an overnight fall for US equities markets, and with China’s markets remaining closed for a second consecutive day. 

In overnight commodities trade, US gold futures swung lower. Oil turned to settle higher.

Iron ore (China port, 62% Fe) continued lower. 

LME copper turned slightly higher. Aluminium rallied.

The $A kept falling after dropping to ~US75.50c early yesterday evening.

Locally today, outcomes from the RBA’s policy meeting will be released 2.30pm AEST.

Pre-trade, AiG’s monthly manufacturing sector activity index, a weekly consumer sentiment reading and a monthly residential property price index are due.

A plethora of March quarter reports has also been lodged since yesterday’s close-of-trade.

Markets in China remain closed today, due to the 1 May Labour Day holiday. Markets in Hong Kong, Singapore, and several other Asian nations are also closed today.

Overseas Market Commentary
US equities markets opened higher overnight, but were soon pushed into a downward trend amid end-of-month trade and the confirmation of some large mergers. 

Major European equities indices chopped and swung, ahead of the closure of several European markets today for May Day commemorations.

In European data releases, Germany’s final April CPI reading came in flat for the month and 1.6% higher year-on-year, following a 0.4% monthly gain in March. Some economists had predicted a slight pullback for April inflation.

March retail sales fell 0.6%, against expectations of a 0.8% improvement, and following a 0.2% decline in February, pushing the euro to ~three-month lows against the $US. Year-on-year, sales were 1.3% higher.

In mixed US data releases, March personal income and spending rose 0.3% and 0.4% respectively for the month. 

The core personal consumption expenditures (PCE) index rose 1.9% year-on-year, following a 1.6% rise in February, bolstering views of up to three more US rate rises before year’s end.

Pending home sales rose 0.4%, but up to a 1.0% gain had been anticipated after February’s 3.1% jump. 

Meanwhile, the Chicago PMI rose 0.2 to 57.6, following forecasts of 58.0.

A 21.8 Texas region manufacturing index undershot expectations of 23.0, but followed 21.4 and 22.8 for the two previous months. 

Tonight in the US, the US Federal Reserve commences a two-day policy meeting from which outcomes will be known early Thursday AEST.

Among data releases, ISM’s April manufacturing index, March construction spending and April vehicle sales are due.

Companies scheduled to report earnings or provide updates later today and tonight include: Apple, Archer Daniels Midland, Merck, Pfizer and Yamaha.

In overnight corporate news, Ohio-headquartered Marathon Petroleum revealed it was paying $US36B for San Antonio competitor, refiner and pipeline specialist Andeavor, to become the nation’s largest refiner. Marathon was pushed ~7% lower, and Andeavor 13% higher.

In the UK, Sainsbury’s supermarket chain and US-headquartered Walmart’s UK subsidiary Asda confirmed a merger valuing Asda at £7.3B.

McDonald’s was pushed more than 5.5% higher after March quarter profit exceeded industry forecasts. 

Pharmaceuticals manufacturer Allergan also bettered expectations but was pushed 5% lower.

In the same sector, Celgene fell 4.5% on an independent report anticipating a delay for the firm’s proposed MS treatment.

The previously announced $US26B merger of T-Mobile and Sprint pushed the telcos respectively ~6% and ~13.5% lower on regulatory fears.