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State One Market Opener - 23 Aug 2016

Local Markets Commentary
The Australian market opens on mostly negative international equities and commodities leads, amid a plethora of high-profile company reports.

In overnight commodities trade, gold continued lower. Oil fell on both sides of the Atlantic. Copper fell further. Iron ore advanced slightly.

The $A was pushed higher after trading above ~US76.15c early yesterday evening.

Locally pre-trade, a weekly consumer sentiment reading is due.

Overseas Market Commentary
Major European and US equities markets extended Friday’s falls, US indices in particular swinging and chopping through overnight trade.

Weekend comments from US Federal Reserve vice chair Stanley Fischer seemed to unsettle, but low-volume summer trade and a dearth of new data appeared to also exaggerate moves.

Oil fell, hurting energy sector stocks, but select tech and biotech companies appeared in favour due to confirmation of two significant acquisitions and expectations of another.

In addition, the Bank of Japan’s governor had conceded deeper negative rates could be required.

In US data releases, the July Chicago Fed national activity index was reported at a one-year high of 0.27, from 0.05 in June. The three-month moving average came in at -0.10 following -0.19.

Tonight in the US, July new home sales, an initial Markit national manufacturing PMI for August and a regional manufacturing index is due.

PetroChina, UK homebuilder Persimmon and US retailer Best Buy are among companies scheduled to report earnings today and tonight.

Overnight, Pfizer confirmed it had won over prostate cancer drug manufacturer and NASDAQ-listed Medivation with a $US14B offer, pushing Medivation ~20% higher.

Chip manufacturer Intersil appreciated similarly on talk Japanese company Renesas Electronics would likely purchase the company for ~$US3B.

Syngenta also traded higher after US regulatory approval for its $US43B acquisition by ChemChina

23/08/2016 7:47:53 AM

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