Local Markets Commentary

The Australian market opens Friday trade on mostly lacklustre equities but largely positive commodities leads.

In commodities trade, oil continued to rally. US gold futures and LME copper turned higher. Iron ore swung lower.

The $A slipped after trading at ~US77.0c early yesterday evening.

Locally today, peak financial reporting season continues as ex-dividends begin to warm.

Overseas Market Commentary

Major European and US equities markets settled higher overnight, but choppy and swinging trade featured across several indices.

US data releases proved heartening.

Weekly new unemployment claims fall 4000, four times as much as expected, and to a monthly low.

A Philadelphia region manufacturing index also pleased, gaining 4.9 points to +2.

Meanwhile, a July leading indicators index was reported 0.4% higher, following a 0.3% rise in June.

In the UK, the pound sterling gained after July retail sales were reported 5.9% higher year-on-year, following a 4.3% gain in June. Further, for the month, sales improved 1.4% after a June monthly 0.9 pullback. This contrast was attributed to persistently wet June weather and a warm July.

A euro zone final July CPI reading confirmed the initial 0.2% annual growth estimate, but a 0.6% monthly fall.

European Central Bank (ECB) July policy meeting minutes appeared to emphasise a cautious approach to potential international impacts from the UK vote to leave the European Union, and also concern at the health of regional banks.

Companies scheduled to report earnings tonight include Deere & Co, Foot Locker and Estee Lauder.

Overnight, major US retailer Wal-Mart reported higher sales, with the exception of the company’s UK ASDA business, and a $US3.8B quarterly net profit.