Local Markets Commentary

Australian market trade will likely play out amid some early caution, after US equities settled little changed again ahead of a US Federal Reserve policy statement tonight.

In addition, regionally today, the Bank of Japan releases its policy meeting outcomes statement (usually ~1pm - 2pm AEST). Japan’s trade balance figures are expected 9.50am AEST.

In overnight commodities trade, US gold futures settled virtually flat, and WTI crude modestly higher. Copper swung to a gain, and nickel built on Monday’s rally. Iron ore settled steady.

The $A slipped to ~US75.50c after trading at ~US75.60c early yesterday evening.

Locally today, leading economic indices (10.30am) and skilled vacancies (11am) reports are due.

Companies trading ex-dividend include CAR, MQA, NCM and WEB. Please see pp3-4 for a detailed list.

Japan’s markets will be closed tomorrow during a public holiday.

Overseas Market Commentary

Choppy trade featured across several major European and US equities markets overnight, ahead of outcomes from Bank of Japan and US Federal Reserve policy meetings later today and tonight.

US August housing starts dropped 5.8%, but this was mostly attributed to flooding across two southern States. Building permits pulled back 0.4%.

In the UK, the British pound (£) suffered, reportedly from central bank meeting speculation.

Tonight in the US, the US Federal Reserve releases its policy meeting outcomes statement (early Thursday AEST), ahead of a press conference with chair Janet Yellen. Weekly mortgage applications are also due.

In overnight corporate news, Allergan revealed it was paying up to $US1.7B for liver treatment specialist Tobira Therapeutics, propelling Tobira more than 700% higher.