Local Markets Commentary

Most key commodities prices have fallen ahead of Australian market trade mid-week trade, but major international equities markets settled higher overnight.

In commodities trade, oil swung lower and US gold futures higher. LME copper pulled back moderately. Iron ore (China port, 62% Fe) settled slightly lower, but remained above $US73.5/t.

The $A was pushed below US79.80c, after trading at US80.10c early yesterday evening, and has traded sub-US79.60c this morning.

In local data releases today, June building approvals are expected 11.30am AEST.

Overseas Market Commentary

Major European and US equities markets mostly opened higher overnight and ultimately settled in a chorus of gains, buoyed by some better-than-anticipated corporate results and outlooks, encouraging manufacturing data and record peak enthusiasm.

In the US, the ISM’s July manufacturing activity index slipped 1.5 points, but to a nevertheless strong 56.3.

June personal income and spending disappointed, income remaining steady following a 0.4% rise in May, and spending rising 0.1%.

Personal consumption expenditure (PCE) rose 0.1% for the month and 1.5% year-on-year.

Construction sector spending fell 1.3% against expectations of a 0.5% increase.

Overall July vehicle sales dropped 6.1% from a year earlier.

Earlier in the UK, the July manufacturing PMI was estimated 0.9 of a point higher for the month, at an encouraging 55.1. The British pound subsequently traded against the $US at a 10-month peak.

Euro zone 0.6% June quarter GDP growth pushed the annual rate to 2.1%. March quarter GDP was revised 0.1% lower to a 0.5% improvement.

The region’s final July manufacturing PMI was calculated at 56.6, 0.8 lower than for June, but as with UK and US readings, remaining robust.

Tonight in the US, a private sector employment report, ISM’s New York July activity index and weekly mortgage applications are due.

AIG, BAE Systems, Marubeni, Mazda, Mitsubishi, Mondelez, Sojitz and Standard Chartered and Tesla are among companies scheduled to report earnings today or tonight.

In overnight corporate news, BP reported a return to June quarter profit, buoyed by 21% higher revenue, in turn supported by increased production.

In the US auto sales sector, Ford reported a year-on-year 7.4% drop in July sales but General Motors sales slumped 15.4%. Fiat Chrysler’s slid 10.7%.

Toyota claimed a 3.6% rise.

Post-US trade, Apple’s quarterly revenue came in better than anticipated, boosted in part by a 22% rise in sales for the services division to $US7.3B.