Local Markets Commentary

The Australian market will open September trade on mostly negative international equities and commodities leads, ahead of influential regional data and as key stocks trade ex-dividend.

Regionally today, China releases official August manufacturing and services PMIs 11am AEST. Caixin releases a manufacturing PMI estimate 11.45am AEST.

A final August manufacturing PMI is due for Japan 10.30am AEST.

Locally today, another group of high-profile stocks trades ex-dividend, including BHP, CCL, CGF and PRY.

Pre-trade, AiG will release its August manufacturing sector activity index.

The ABS releases July retail trade and June quarter private sector capital spending figures 11.30am AEST. A house price index is also due today.

Post-trade, the RBA will publish monthly commodity prices.

In overnight commodities trade, oil picked up the pace of its current decline. Gold continued moderately lower. Copper settled slightly lower. Iron ore was unchanged.

The $A largely held after trading above ~US75.20c early yesterday evening.

Overseas Market Commentary

Major European and US markets fell on opening overnight, amid international growth concerns and a further tumble for oil, as US Federal Officials continued to push for another rate rise.

The rate speculation was supported by a 177,000 increase in private sector jobs over the past month, according to ADP. In addition, July’s gain was revised 15,000 higher to 194,000.

July pending home sales were reported 1.3% higher and June’s 0.2% rise revised to a 0.8% fall.

The Chicago August (composite) PMI dropped to 51.5, at least 2.5 below forecasts and 4.3 below July’s figure.

Weekly mortgage applications fell 2.8%.

A preliminary estimate of euro zone August CPI growth came in at 0.2% year-on-year, the same as for July.

Germany’s July retail sales rose 1.7% for the month, but the annual rate fell 1.5%.

In the meantime, Brazil reported a 0.6% further fall in GDP during the June quarter, and a 4.6% year-on-year drop for the six months to 30 June.

Another key oil producer, Nigeria, officially entered recession with a 2.06% GDP fall for the June quarter, following a 0.36% pullback during the March quarter.

Earlier, India had declared June quarter GDP growth at an annual 7.1%, against 7.9% for the March quarter.

Tonight in the US, weekly new unemployment claims, a job cuts report, ISM’s August manufacturing index, a final Markit August manufacturing PMI and July construction spending figures are due. Major vehicle manufacturers also report August sales.

Campbell Soup, Pernod Ricard and Tata Motors are among companies scheduled to report earnings or provide trading updates.

Overnight, S&P 500 stock H&R Block dropped ~10% on disappointing quarterly revenue.

Speculation of a possible Commerzbank and Deutsche Bank merger was quashed after talks were confirmed, but not before each stock had risen more than 2.5%.

Despite earlier reports to the contrary, Ireland announced its cabinet could not agree on a response to the EU ruling on Apple’s tax arrangement.

Meanwhile, US markets are heading towards a Monday public holiday weekend.