Local Markets Commentary

The Australian market opens mid-week trade on further but modest US equities gains, and a return surge higher for iron ore.

In other overnight commodities trade, US gold futures and oil turned lower. Copper extended Monday’s rally.

The $A fell a little after trading at US74.0c yesterday evening when supported by an RBA dinner speech.

Locally today, September quarter construction work and October employment vacancies are due.

Japan’s markets will be closed today due to a public holiday.

Overseas Market Commentary

US equities markets continued higher overnight, sentiment and the $US buoyed by positive data. The DJIA traded, and settled, above the psychologically significant 19000 mark.

Major European equities indices appeared to largely benefit from metals price gains, but mostly settled at session lows.

In US data releases, October existing home sales rose 2% to an ~9.5-year high.

The Richmond Fed manufacturing index was reported back in expansion mode, rising eight points to +4.

Tonight in the US, Federal Reserve November policy meeting minutes, October durable goods orders, new home sales, a house price index, a University of Michigan final November consumer sentiment reading and a Markit preliminary manufacturing PMI are due, together with weekly mortgage applications.

Tonight is also the last full-session trade for the week for US markets which will be closed tomorrow for the Thanksgiving holiday. Friday (half-normal session) trade is traditionally low-volume.

In the UK, chancellor Phillip Hammond delivers his first budget update (Autumn statement).

CMC Markets, Deere & Co, Thomas Cook and United Utilities are among companies scheduled to report.

Overnight, PepsiCo and Dr Pepper announced purchases of companies making drinks viewed as more healthy than traditional soft drink/soda.