Local Markets Commentary
The Australian market opens mid-week trade again following vacillating international equities and commodities trade as reporting season continues to feature influential stocks. 

Locally today, the Australian Bureau of Statistics (ABS) reports construction work done for the December quarter 2018, 11.30am AEDT. This, ahead of a December quarter GDP reading Wednesday next week.

High-profile stocks continue to report earnings, today’s list including AAC, BAL, SEK, RIO and VOC.

Large-cap stocks trading ex-dividend today include AMP, IRE, ORA and TLS. Please see pp4-5 for details.

Regionally, China is expected to release January industrial profits 12.30pm AEDT.

In overnight commodities trade, oil turned higher, Brent crude gaining considerably against WTI.

US gold futures (April) settled lower for a second consecutive session.

Iron ore (China port, 62% Fe) fell for a second consecutive session.

LME copper settled essentially flat.

The $A has appreciated to ~US71.90c after falling to ~US71.45c early yesterday evening.

Overseas Market Commentary
Major European and US equities markets headed lower early, but trended higher at various intervals as investors considered:

US central bank comments;

the prospect of a delayed UK withdrawal from the European Union;

mixed data releases; and

the likely figures from key data releases to come this week, including from China, the US and euro zone.

All this amid the wait for official China comments on the latest trade negotiations and any outcomes from US-North Korea leaders’ meeting commencing later today in Hanoi, Vietnam. 

US Federal Reserve chair Jerome Powell told a parliamentary committee the central bank had taken note of slowing international economic growth and this would be a factor in considering domestic policy.

Mr Powell also spoke of a changing outlook and ‘crosscurrents’ and reiterated the bank would continue to focus on incoming data.

In the UK, PM Theresa May proposed to parliament that a vote to rule out a ‘no-deal’ separation from the European Union (EU) and hence push back the UK’s withdrawal from 29 March would be offered should revised separation arrangements be voted down 12 March.

The British pound subsequently rallied significantly (the most against the euro in 1.75 years) and equities trade suffered.

A swag of US data releases came in decidedly mixed, the Richmond Fed manufacturing index jumping to 16 from -2.

The Conference Board’s February consumer confidence reading also improved significantly, by 9.7 point to 131.4. 

December building permits rose 0.3% for the month following a 4.5% November gain.

Housing starts dropped 11.2%, however, against a 0.4% November improvement.

FHFA-calculated December residential property prices rose 0.3% for the month, against a 0.4% November increase.

Case-Shiller’s December house price index pulled back 0.2% for the month, following a 0.1% November slip, and came in 4.2% higher year-on-year. 

In relatively scant other data releases, GfK’s March consumer confidence index for Germany came in flat, at 10.8.

UK January mortgage approvals rose to 40,630 from 39,350.

Tonight in the US, Federal Reserve chair Jerome Powell continues parliamentary testimony, this time with a House of Representatives financial services committee.

US data releases scheduled for release include December factory orders, January pending home sales and weekly mortgage applications.

Companies scheduled to report earnings or updates later today or tonight include: Bayer, Best Buy, Campbell Soup, HP Inc, HSBC, Hyundai, ITV, Lotte, Lowe’s, Office Depot, Petrobras, Posco and Rio Tinto. 

In overnight corporate news, Home Depot results and guidance disappointed.

Department store Macy’s exceeded profit expectations, however.

The US SEC meanwhile was reported to have complained to the judiciary of a Tesla CEO (Elon Musk) SEC settlement violation.

Caterpillar suffered from a sell recommendation.