Local Markets Commentary

The Australian market opens Friday trade on little change for US equities, amid mixed key commodities leads and heightened geopolitical tensions, and ahead of a manufacturing PMI estimate for China.

In overnight commodities trade, gold swung higher, and oil lower. Copper picked up the pace of Wednesday’s fall as nickel continued to rally.

The $A again traded in a relatively narrow range, after being propelled beyond US76.65c yesterday evening.

Locally pre-trade, a January services sector activity index is due. January vehicle sales are expected midday.

China’s January manufacturing PMI, as estimated by Caixin, is anticipated 12.45pm AEDST. Caixin will follow up with a services PMI Monday.

China’s markets also resume today following a week of holidays.

Bank of Japan December policy meeting minutes are due 10.50am AEDST. Final January manufacturing and services PMI readings are expected 11.30am.

Overseas Market Commentary

Swinging and/or choppy trade featured across most major European and US equities markets overnight.

The Bank of England raised by 0.6%, to 2%, its 2017 UK GDP growth forecast, but kept policy unchanged in a unanimous vote. The central bank expects growth to slow to 1.6% in 2018.

Among US data releases, a monthly job cuts report revealed businesses outlined 37% more layoffs in January than in December, the 45,934 cuts amounting to the most in nine months

Weekly new unemployment claims fell by 14,000.

December quarter productivity was estimated 1.3% higher year-on-year, against a 1.7% rise in labour costs.

Tonight in the US, monthly employment figures, including the number of jobs created and headline unemployment, are due. In addition, ISM will publish its January services sector activity index and Markit, a revised January services PMI. Factory orders are also expected.

Hershey, Honda, Philips 66, Sharp, Sojitz and Yamaha are among companies scheduled to report earnings today and tonight.