Local Markets Commentary

The Australian market commences Monday’s trade on mixed international equities leads.

Over the weekend, China reported an 11% rise in July industrial profits, the steepest in four months, and a 6.9% year-on-year gain for January – July.

In overnight Friday commodities trade, US gold futures settled slightly higher. Oil also ultimately advanced. Copper continued a little lower. Iron ore fell.

The $A was pushed beyond US76.50c after trading at ~US76.35c early Friday evening.

Locally today, companies trading ex-dividend include AZJ, WES and WPL. The HIA releases July new home sales.

Overseas Market Commentary

Major European and US equities markets settled mixed, US equities falling on a key monetary policy forum speech by US Federal Reserve chair Janet Yellen.

Ms Yellen spoke of a stronger case for a US rate rise. Fellow US central bankers at the forum were prepared to offer stronger indications that this could be before the end of the year, pending key data, and one mentioned 20 September as a possibility.

In the meantime, in US data releases overnight Friday, a second estimate (of three) for June quarter GDP growth came in 0.1% lower than the original figure, at 1.1%. The consumer spending component was revised 2.4% higher, however, to a 4.4% improvement.

An 89.8 final August reading of the University of Michigan consumer sentiment index represented a mere 0.2% slip, but forecasts had averaged 91 and the reading was the lowest in four months.

UK June quarter GDP growth was confirmed at 0.6% and 2.2% at an annual rate.

In Germany, another consumer sentiment reading came in higher than anticipated, in addition representing an improvement on the previous month.

Tonight in the US, July personal income and spending figures will be keenly anticipated. A manufacturing index for Texas is also due.

AirAsia and Angang Steel are among companies scheduled to report earnings today and tonight.

The London Metals Exchange (LME) will not trade tonight as UK markets are closed for a Monday public holiday.