Local Markets Commentary
The Australian market opens Friday trade on a further overnight deterioration in sentiment across key international equities markets. 

In mixed overnight commodities trade, gold futures fell. Oil continued to tumble.

Iron ore (China port, 62% Fe) swung higher.

LME copper settled slightly lower, but nickel picked up the pace of Wednesday’s decline. Aluminium turned higher.

The $A appreciated to ~US77.64c after falling below US77.35c early yesterday evening.

Regionally today, Japan publishes January employment and household spending statistics.

Locally, no major data releases are scheduled, but several are due before the Reserve Bank of Australia’s (RBA) policy meeting Tuesday next week. 

Meanwhile, major ex-dividend season continues. 

Please see pp 2-3 for details.

Overseas Market Commentary
Major European and US equities markets headed yet lower overnight amid trade war angst and swinging currencies, despite broadly strong manufacturing figures on both sides of the Atlantic.

US president Donald Trump revealed the planned introduction of 25% and 10% respective import taxes on steel and aluminium from as early as next week. The president said the taxes would remain in place ‘for a long time’.

Commentary lit up also when Federal Reserve chair Jerome Powell resumed parliamentary testimony, this time to a Senate banking committee, noting that current domestic fiscal stimulus impacts remain ‘very, very uncertain’ and pointing out there was yet no trend higher for wages.

The $US had traded at six-week peaks, but also respective two- and seven-week lows against the yen and euro on confirmation of the magnitude of the proposed US tariffs.

Meanwhile, one Federal Reserve president described trade protectionist trade policy as a ‘dead end’.

In the euro zone, a 58.6 final February manufacturing PMI, incorporating Germany’s 60.6, each represented improvements on nonetheless robust January figures.

The UK’s manufacturing PMI slipped from 55.3 to a still creditable 55.2, nonetheless the lowest in eight months. 

In the meantime, European Council president Donald Tusk noted ‘real political difficulties’ in negotiating the UK’s separation from the European Union.

In the US, ISM reported a 60.8 February manufacturing index, against 59.1 for January, and the best reading since May 2004. 

January personal income rose 0.4% for the month, but spending just by 0.2%. 

Savings rose to $US464.4B, following $US363.2B in December.

January construction spending came in steady, delivering a 3.2% year-on-year rise.

Tonight in the US, ISM’s New York business activity index and a final February University of Michigan consumer sentiment reading are due.

Companies scheduled to report earnings later today or tonight include JD.com, Foot Locker, JC Penney and Spire. 

In overnight corporate news, UK engineer GKN was said to be considering selling its automotive division to US-headquartered Dana. 

US vehicle sales fell, relevant stocks falling also on input tariff and domestic supply uncertainty.

Exxon announced it would exit JVs with Russia’s Rosneft, citing sanctions issues.