Local Markets Commentary

The Australian market opens a new month’s trade on a Friday with positive international equities and commodities leads, ahead of further influential domestic and regional economic indicators, as several large-cap stocks trade ex-dividend.

A Caixin August manufacturing PMI for China is due 11.45am AEST.

A final manufacturing PMI for Japan is expected 10.30am.

Locally pre-trade, AiG is due to release an August manufacturing PMI.

CoreLogic provides an August house price report and post-trade, the Reserve Bank of Australia (RBA) publishes monthly commodity prices.

Companies trading ex-dividend today include ALU, CGF, FMG, GUD, LLC, REG and TTS.

In overnight commodities trade, US gold futures and oil swung higher. Iron ore (China port, 62% Fe) also turned and rallied. LME copper settled a little higher following Wednesday’s fall, but other key base metals were pushed higher into rally mode.

The $A appreciated to ~US79.50c after slipping below US78.90c early yesterday evening.

Overseas Market Commentary

Major European and US equities markets mostly headed higher on opening again, with much to consider during end-of-month trade, as the US headed towards a favourite, end-of-summer Monday public holiday weekend.

Among US data releases, July personal income rose 0.4% and spending 0.3%.

July pending home sales fell 0.8%, against expectations of a 0.5% rise, and after increasing 1.3% in June.

Weekly new unemployment claims rose 1000 but the four-week average declined 1250.

An ISM-estimated Chicago PMI came in flat, at 58.9.

Meanwhile, US treasury secretary Steven Mnuchin talked of ‘very detailed’ tax plans being parsed by members of parliament.

In other activity, the US ordered the closure of one Russian consulate and other administrative offices in the US.

Earlier, US-South Korea-Japan military exercises had turned more demonstrative in the Korean peninsula region, with aerial activity led by US F-35B craft.

In the euro zone, an initial August CPI reading represented 1.5% annual growth, following 1.3% for July. This raised further interest in next Thursday’s European Central Bank (ECB) policy meeting.

Tonight in the US, monthly national employment figures are due, together with ISM’s August manufacturing index, July construction spending, a final August University of Michigan consumer sentiment reading, and Markit’s manufacturing PMI. Major vehicle manufacturers also report August US sales.

BRICS (Brazil, Russia, India, China, South Africa) leaders are in the meantime preparing for their annual summit, commencing Sunday and continuing through Tuesday in Xiamen, Fuji province, China.

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