Local Markets Commentary

The Australian market commences Friday’s trade on mixed international equities and commodities leads, ahead of a key jobs report and Monday public holiday weekend in the US.

In overnight commodities trade, oil dropped further. Gold swung higher and iron ore lower. LME copper turned modestly higher.

The $A appreciated further after trading at US75.40c yesterday evening.

Locally today, FMG and SHV are among stocks trading ex-dividend.

Meanwhile, China is preparing to host the G20 leaders’ forum Sunday and Monday in Hangzhou.

Overseas Market Commentary

Major European and US markets swung intra-session overnight, largely on wavering US data which further confused rate rise timing speculation and continuing lower oil prices.

ISM’s August US manufacturing index surprised, dropping 3.2 to a contraction-mode 49.4.

Markit’s usually less-influential final August manufacturing PMI came in 0.9 lower for the month, at 52.

Weekly new unemployment claims rose 2000, and the four-week moving average declined 1000, each to 263,000.

A job cuts report calculated 32,188 planned layoffs during August, against 45,346 in July.

Euro zone final August PMI readings were unsurprising but the UK’s 53.3, against July’s 48.2 and forecasts for ongoing contraction proved cheery.

Tonight in the US, August employment statistics are keenly anticipated. July trade figures, factory orders and ISM’s New York region business activity index are also due.

Sovereign rating updates are expected for several nations including Greece, Ireland, Finland, Sweden, Portugal and Belgium.

Overnight, major vehicle manufacturers mostly reported declining August sales. Ford’s dropped 8.4% on a 25% plunge in passenger vehicle sales. GM’s fell 5.2%, and Toyota’s 5.0%, but Fiat Chrysler’s rose 3% in spite of a 13% passenger vehicle fall.

US markets will be closed Monday due to a public holiday.