The Australian market commences today’s trade following overnight falls for most key commodity prices and across US equities markets. In overnight commodities trade, oil swung lower. US(December) gold futures turned moderately lower. Iron ore (China port, 62% Fe)settled flat, but lower and higher grades gained. LME copper settled flat.Nickel continued to decline. Aluminium swung lower. The $A fell to ~US70.60c after briefly trading beyond US71.05c early evening. Locally today, a weekly consumer sentiment reading is due pre-trade. The Australian Bureau of Statistics (ABS) releases September building approvals 11.30am AEDT. Also today, Reserve Bank of Australia (RBA) assistant governor (financial system)Michele Bullock is scheduled to speak at a conference in Sydney 1.10pm AEDT. In addition, operational updates are anticipated from several high-profile stocks hosting AGMs.

Overseas Market Commentary

Trade across major European and US equities markets diverged markedly overnight. Key US indices rallied on opening but began to head lower ~two hours into trade. US personal spending figures had pleased, but the threat of potential new and/or increased taxes onim ports from China fuelled domestic and international economic concerns. In Germany, chancellor Angela Merkel was reported early to be wanting tore linquish the leadership of her political party by year’s end, but was prepared to lead the government for two years. Italy received an unexpected,albeit limited sentiment boost, Standard & Poor’s (S&P) announcing overnight Friday that the nation’s BBB credit rating would be retained. S&P lowered the outlook to negative, however.

Italy’s parliament isexpected to commence deliberations on the government’s proposed highdebt

budget this week. In theUK, the Autumn budget included promises of additional funds for the nationalhealth system, defence, counter-terrorism and roads. A road tax, digitalservices provider tax, fuel tax freeze, minimum wage boost andearlier-than-expected lower personal tax thresholds also featured.

Among new data releases,US September consumer spending was reported 0.4% higher for the month, with August’s figure revised 0.2% higher to a 0.5% gain. This, against a 0.2% rise in September personal income. The spending increase represented the seventh consecutive rise, but income the least rate increase in 15 months, and just half August’s boost. A Federal Reserve Texas region manufacturing activity index came in 1.3 higher for the month, at 29.4. Tonight, in the US, an August house price index and October consumer sentiment reading are due. Companies scheduled to reveal earnings or provide updates later today or tonight include: Agricultural Bank of China,Airbus, Allergan, Anadarko Petroleum, Baidu, BNP, Baoshan Iron & Steel,Bright Dairy & Food, BP, Coca-Cola, eBay, Facebook, Fiat Chrysler, General Electric (incl Baker Hughes), Honda Motor, Kobe Steel, Mastercard, PeabodyEnergy, Pfizer, Reckitt Benckiser, Sony, Standard Chartered and Volkswagan

In overnight corporate news, HSBC helped boost European sentiment, reporting a better-than anticipated$US5.9B quarterly profit. European vehicle manufacturers were also in favour on reports China’s promised import tax reductions for personal vehicles could beas much as 50%.

A new digital services provider tax, proposed in the UK budget overnight, may have added to recent

reporting season tech sector growth fears.