Local Markets Commentary

The Australian market opens today’s trade on mixed commodities leads and with little inspiration from overnight international equities trade.

Local and regional data, plus corporate reports, may hence prove the major influences on today’s moves.

In overnight commodities trade, oil swung higher again. US gold futures settled lower. Iron ore (China port, 62% Fe) traded lower for a second consecutive session, but remained above $US72/t. LME copper turned slightly higher.

The $A was pushed a little higher, after trading at ~US79.60c early yesterday evening, but has fallen this morning.

Locally today, July trade figures are due 11.30am AEST.

Pre-trade, the AiG releases its July services sector activity index. July vehicle sales are also expected today.

Regionally, final July services and composite PMIs are due out of China and Japan, 11.45am and 10.30am respectively.

Overseas Market Commentary

Vacillating trade featured across major European and US equities markets overnight, as high-profile corporates and some undershooting economic indicators continued to influence intra-session sentiment.

Among US data releases, a private sector employment report estimated 178,000 new jobs for July, following forecasts of 185,000 and June’s 191,000.

Euro zone June producer prices rose 0.1% for the month, but slowed to 2.5% year-on-year, from 3.4% for May.

The UK’s July construction PMI fell 2.9 points to 51.9, following forecasts of 54.5.

Tonight in the US, ISM’s July services sector activity index, June factory orders and Markit’s final July services PMI are due, together with weekly new unemployment claims.

Across the Atlantic, the Bank of England convenes a policy meeting and will release an outcomes statement.

Adidas, Aviva, Kellogg, Kraft Heinz, Mitsubishi UFJ, Mitsui, Shire, Siemens, Sumitomo and Yum Brands are among companies scheduled to report earnings today or tonight.

Unilever and HSBC trade ex-dividend on the FTSE 100.

In overnight corporate news, Apple’s quarterly results and outlook, released post-US trade Tuesday, supported some sentiment, the DJIA trading slightly higher to a sixth consecutive record settlement, this time above 22,000 after attaining this for the first time early-session. Apple traded ~4.5% higher, recording a new intra-session peak.

Rio Tinto’s underlying interim profit undershot expectations, despite impressive overall profit and revenue gains, but these were attributed to select commodity price appreciations, in particular iron ore. The stock was pushed ~3% lower, constraining general minerals sector sentiment.

On a day when major stocks from across varied sectors reported, Time Warner and Mondelez International each pleased.

Tesla reported post-US trade and could influence tonight’s trade. The company’s loss came in slimmer than expected.