Local Markets Commentary

The Australian market commences Friday trade again with an emphasis on domestic corporate reports.

Overnight international equities leads will offer little support, but some metals trade will be positive for select stocks.

In overnight trade, oil fell. US gold futures turned slightly lower. Iron ore (China port 62% Fe) extended its current pullback. LME copper swung higher and rallied.

The $A was pushed to US79c again after slipping to ~US78.80c early yesterday evening.

Regionally today, a July CPI reading was scheduled for release in Japan 9.30am AEST.

China’s July industrial profits are expected anytime from the weekend.

Overseas Market Commentary

Major European and US equities markets diverged overnight, key US indices falling soon after opening.

In data releases, a final reading for the UK’s June quarter GDP confirmed 0.3% growth for the quarter and 1.7% year-on-year.

In the US, July existing home sales surprised, falling 1.3% following expectations of a 0.9% increase.

Weekly new unemployment claims rose by 2000.

A Kansas City Fed manufacturing index was reported six points higher for the month, at 16.

Tonight in the US, July durable goods orders are due.

In addition, the annual Jackson Hole forum officially commenced overnight, and addresses from US Federal Reserve chair Janet Yellen and European Central Bank (ECB) president Mario Draghi are keenly anticipated for views on asset holdings, currency moves and inflation.

In overnight corporate news, retail stocks Dollar Tree, Sears and Abercrombie & Fitch were respectively pushed 9%, 8% and 15% higher in the US on quarterly reports. Nonetheless, poor sales figures forced Sears to announce the closure of an additional 28 Kmart stores.

On the FTSE, reduced full-year guidance from Dixons Carphone steered that stock more than 20% lower.

UK markets, including the LME, will be closed Monday, due to a public holiday.