Local Markets Commentary

The Australian market opensa new week’s trade with fresh data out of China over the weekend and

three major domestic stockstrading ex-dividend. Yesterday, China reported September quarter

foreign investment inChina’s financial sector tallied $US2.9B. Outflows totalled $US2.64B.

Net offshore investment byChinese financial institutions totalled$US1.75B.

In largely negativeovernight Friday commodities trade, oil dropped further.

US (December) gold futures,and LME copper, nickel and aluminum fell.

Iron ore (China port 62%Fe) extended Thursday’s rally.

The $A slipped to US72.25cafter trading at US72.45c early Friday evening.

Locallytoday, a weekly capital city residential property price report is duepre-trade.

TheReserve Bank of Australia (RBA) releases card transaction figures,11.30am AEDT.

ANZ,MQG and ORI trade ex-dividend.

Overseas Market Commentary

Most major European and US equities markets and never seriouslylooked like recovering.

Germany’s DAX proved the exception, pulled higher in second-halftrade, despite marked vacillations, as the euro traded at 16-month lows againstthe $US.

Following talks with US secretary of state Mike Pompeo,China’sOffice of Foreign Affairs director

Yang Jiechi and Politburo Member Yang Jiechi publicly promoted‘dialogue and consultation’,

warning any trade conflict extension threatened not only the economiesof the US and China, but also international economic health.

Earlier Friday, China had reported a fourth consecutive month ofslowing producer prices, and

an almost 12% drop in October vehicle sales. Early overnight Fridaydata releases included a

batch of mixed key UK economic indicators.

A preliminary September quarter GDP growth estimate came in at0.6% for the three months and

1.5% year-on-year. June quarter GDP advances had been finalizedat 0.4% and 1.2% respectively.

The nation’s September trade deficit, also published Friday,improved to £270M, from £2.1B at the end of August.

Industrial production was deemed stagnant for the month, andyear-on-year, following a 1% year-on year August rise. August monthlyindustrial production was also reported flat.

Construction output rose3% year-on-year, after 1 0.5%improvement in August.

Meanwhile, the government’s transport minister resigned hisministerial position, and from

government, over dissatisfaction with negotiations for the UK’splanned separation from the European Union (EU).