Local Markets Commentary

The Australian market opens Friday’s trade on mostly negative international equities leads. Key commodities settled mixed.

Regionally today, China is due to release August CPI and PPI 11.30am AEST.

Locally, housing finance figures are due from the ABS 11.30am.

Highly-traded stocks turning ex-dividend include BSL, RFG and SFR. Please see pp2-3 for a detailed list.

In overnight commodities trade, oil was propelled higher, significantly extending the previous session’s gains, and favouring today’s energy sector trade.

US gold futures continued lower for a second consecutive session. LME copper settled modestly higher. Iron ore fell further.

The $A dropped below US76.50c after surpassing US77.25c yesterday evening.

Overseas Market Commentary

Major European equities markets fell in second-half overnight trade and US indices traded lower on opening. The sentiment busters appeared to be reserve bank policy and outlook concerns.

Specifically overnight: a possible US Federal Reserve rate rise weighed against a recent string of unsettling data; and the European Central Bank (ECB) offered no definitive update on potential policy moves, despite lowering regional forecasts for the next two years, and repeating that rates would remain lower for longer.

In the meantime, US new unemployment claims were reported 4000 lower for the previous week, and the four-week moving average down 1750, supporting those pushing for a near-term rate rise. July consumer credit rose $US17.7B and June’s increase was revised $US2.3B higher, to $US14.5B. The annual July rate came in at 5.8%. Tonight in the US, July wholesale inventories are due.

Sovereign rating updates are anticipated for Kazakhstan and Finland, and Russia is expected to release June quarter GDP anytime from tonight. Overnight, Ford Motor Company lowered its full-year profit forecast $US0.6B to $US10.2B.