Local Markets Commentary

The Australian market commences today’s trade on lacklustre equities and mixed commodities leads, ahead of key domestic data.

In overnight commodities trade, gold swung lower. Oil gained. Copper turned and fell, but nickel continued to rally.

The $A traded within a relatively narrow range, after being pushed beyond ~US75.85c yesterday evening.

Locally today, the ABS releases December trade figures and building approvals 11.30am AEDST.

China’s markets remain closed today, due to the Spring Festival holiday season, but resume tomorrow.

Overseas Market Commentary

Major European and US equities markets bounced early. US and UK trade subsequently vacillated but achieved positive settlements, amid some positive US data releases and tech sector trade.

In the US, the Federal Reserve concluded its first policy meeting of the year with mention of strengthening economic indicators and rising inflation, and hence indicating FOMC members envisaged more than one rate rise this year.

Across the Atlantic, in an initial vote, the UK parliament approved proceeding with the process required to separate from the European Union (EU). Two more votes will follow.

Among US data releases, a private sector employment report estimated 246,000 jobs had been created during January, well above expectations.

ISM’s January manufacturing activity index came in 1.5 points higher than for December, at 56.

Weekly mortgage applications dropped 3.2%, but this was no surprise after interest rates rose beyond 4%.

Tonight in the US, weekly new unemployment claims are due, together with a monthly job cuts report, ahead of tomorrow night’s January employment figures. Productivity and economic optimism reports are also expected tonight.

In the UK, the Bank of England holds a policy meeting and releases a new inflation report.

Amazon, AstraZeneca, ConocoPhillips, Deutsche Bank, Kobe Steel, Lazard, Mazda, Merck, Mitsubishi, Motorola, Panasonic, Royal Dutch Shell, Sony and Visa are among companies scheduled to report earnings today and tonight. Glencore and Vodafone are expected to provide trading updates.

In overnight corporate news, Apple benefited from quarterly results lodged post-US trade Tuesday.

Vehicle manufacturers reported mostly lower US sales for January, Toyota and Fiat Chrysler sales dropping 11%.