Local Markets Commentary

The Australian market will open on decidedly negative international equities leads, as the first of three US presidential candidate debates procedes.

In overnight commodities trade, oil swung higher and US gold futures turned to settle with a small gain. Copper and iron ore pulled back slightly.

The $A climbed above US76.35c after trading at ~US76.10c early yesterday evening.

Regionally today, China is expected to release August industrial profits 11.30am AEST.

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

Ex-dividend season also continues.

Overseas Market Commentary

Major European and US equities markets fell on opening overnight and never looked like recovering.

Financial stocks in particular suffered in Europe, in part due to speculation regarding the sufficiency or not of Deutsche Bank’s capital reserves.

An IFO business survey for Germany revealed improved, better-than-anticipated results for all key indices – expectations, current conditions and business climate.

US August new home sales dropped 7.6% for the month, but were 20.6% higher, compared with a year ago.

A Texas region manufacturing index improved to -3.0 from -6.2.

European Central Bank (ECB) president Mario Draghi told a European Parliament economic and monetary affairs committee the region remained exposed to risk but had remained buoyant in the face of the UK vote to leave the European Union.

Tonight in the US, a house price index, initial September services PMI, regional manufacturing index and consumer confidence reading are due.

Nike and Markit are among companies due to report results.