Local Markets Commentary

The Australian market opens mid-week trade on mostly negative overnight international equities leads, ahead of influential domestic data, and amid a heating ex-dividend season.

In mixed overnight commodities trade, US gold futures and oil rallied. LME copper and other key base metals swung lower. Iron ore (China port, 62% Fe) turned higher.

The $A has traded beyond US80.0c after rising to ~US79.70c early yesterday evening.

Locally today, June quarter GDP is due 11.30am AEST.

EVT, IAG, IRE, IVC, MPL, OZL and PPT are among large-cap stocks trading ex-dividend.

Overseas Market Commentary

Major European equities markets chopped overnight, suffering significant late-trade drag when key US equities indices commenced a new week’s trade in a definite ‘risk on’ mood.

Among US data releases, July factory orders dropped 3.3%, the worst monthly fall in ~three years.

ISM’s New York business conditions index dropped 6.2 points to 56.6.

Meanwhile, three Federal Reserve regional presidents sounded rate rise impact warnings.

US 10-year treasury yields fell to their lowest for the calendar year, 2.072%.

In the euro zone, July retail sales came in 0.3% lower for the month, as expected, and 2.6% higher year-on-year.

Tonight in the US, ISM’s services sector activity index, the Federal Reserve’s region-by-region economic (beige book) report, July trade figures and a Markit final August services PMI are due.

In overnight corporate news, Hewlett Packard Enterprise appreciated immediately after reporting post-US trade.

US newspaper publisher Tronc acquired the New York Daily News for $US1 plus liabilities, adding to its stable of well-established newspapers in Chicago and Los Angeles.

Lego reported its first revenue tumble in 13 years, on a drop in half-year sales, announcing it would knock off 8% of employee positions.