Local Markets Commentary

The Australian market opens mid-week trade on mixed international leads, as domestic reporting season continues to deliver large-cap stock results and ex-dividend season warms.

In overnight commodities trade, US gold futures continued to settle higher and WTI crude lower. Iron ore (China port, 62% Fe) declined for a second consecutive session. LME copper and other key base metals rallied.

The $A pulled back some after approaching ~US79.65c early yesterday evening.

Locally today, June quarter construction work done and July building approvals are due 11.30am AEST.

Companies trading ex-dividend today include ILU, MIN, PTM and TLS.

Regionally, Japan releases July retail sales 9.50am AEST, and later, more detailed trade statistics.

Corporate reports could swing China's markets today, as Agricultural Bank of China, China Construction Bank, China Industrial & Commercial Bank, Cosco Shipping Co and Hebei Iron & Steel Co are due to report interim results.

Overseas Market Commentary

Major European and US equities markets headed lower on or near opening overnight, but key US indices were ultimately pushed to positive settlements.

The US administration continued to assess hurricane and subsequent flooding damage in Texas and Louisiana, and the US president spoke of ‘all options’ under consideration in response to North Korea’s decision to test a longer-range ballistic missile over northern Japan early yesterday.

In US data releases, a Case-Shiller June house price index calculated prices rose 5.8% against 5.7% during May.

The Conference Board’s consumer confidence reading came in 2.9 points higher for the month, at a five-month high of 122.9.

Tonight in the US, a second reading of June quarter GDP growth and a private sector employment report are due, together with weekly mortgage applications.

In overnight corporate news, defence and aircraft equipment specialist United Technologies was pushed higher on the DJIA, at least in part due to a report it was negotiating a $20B agreement to purchase Rockwell Collins.

Select retails stocks did not fare so well.

Nike suffered a 2% decline from a research ratings downgrade, but fellow footwear specialist Finish Line stumbled ~20%.

Best Buy raised its revenue outlook and exceeded June quarter expectations, but nonetheless was pushed 12% lower.

Earlier, Renault and Nissan said they would join Dongfeng (due to report interim results today) in manufacturing electric vehicles in China.