Local Markets Commentary

The Australian market commences a new quarter’s trade amid public holidays across four States and Territories, and on mostly positive international equities, but mixed commodities, leads.

During the weekend, the UK has confirmed it will commence formal negotiations to leave the European Union by 31 March 2017.

Also over the weekend, China reported a steady 50.4 September manufacturing PMI and a 53.7 services PMI, up 0.2. China’s markets will remain closed all through this week, for the annual National Day holiday season.

Regionally today, a manufacturing PMI is due for Japan 11.30am AEST. The quarterly Tankan manufacturing survey is also due.

In overnight Friday commodities trade, gold slipped. WTI crude continued to settle higher. Copper also extended gains. Iron ore dropped ahead of the extended holiday season in China.

The $A appreciated beyond US76.55c after trading at ~US76.10c early Friday evening.

Locally today, a manufacturing PMI, house price index and inflation report are due, ahead of the Reserve Bank of Australia’s (RBA) policy meeting tomorrow.

Overseas Market Commentary

Major European and US equities markets mostly bounced overnight Friday during end-of-quarter trade.

An ~15% lift in Deutsche Bank shares in German and US trade also helped raise financial sector sentiment. The turn came on reports the bank would pay the US Department of Justice a $US5.4B penalty rather than the initially determined $US14B.

Germany’s August retail sales grew 3.7% year-on-year, following a 1.5% drop in July.

Meanwhile, the euro zone’s initial 0.4% September CPI growth reading represented a two-year peak.

In the UK, a 2.1% final June quarter GDP growth reading undershot expectations by 0.1%. but bettered the previous estimate by 0.2%.

A GfK UK consumer confidence estimate rose to -1 from -7.

US August personal spending (inflation-adjusted) fell 0.1%, the first decline in seven months, against a 0.2% rise for income.

The final September University of Michigan consumer sentiment reading came in at 91.2.

Tonight in the US, the ISM’s September manufacturing index, a final September Markit PMI and August construction spending are due.

Zojirushi and Tata Motors are among companies scheduled to report earnings or provide sales updates.