Local Markets Commentary

The Australian market will fall on opening, following weak international equities sentiment from overnight Friday and price falls for most key commodities.

Oil swung lower and gold continued so. Copper also turned lower. Iron ore switched slightly higher.

Fresh Libyan port conflict could support oil prices today, however.

The $A dropped below US75.40c after trading at ~US76.20c Friday evening.

Locally today, the ABS is due to report July lending finance 11.30am AEST.

Companies trading ex-dividend, including CIM, ORA, QUB and SDF.

Overseas Market Commentary

Major European and US equities markets fell in concert overnight Friday, European sentiment initially bruised by data but indices dragged lower when US markets opened.

Another US Federal Reserve regional president had spoken in favour of a near-term rate rise, but had previously been viewed as ‘dovish’. The comments ahead of a speech by Federal Reserve governor scheduled for tonight.

The governor has also been known to be particularly cautious on rate rises and tonight is the last night officials can speak publicly before next week’s policy meeting.

Earlier Friday, China’s August 0.1% inflation growth came in short of forecasts, the annual 1.3% rate representing the slowest pace in 10 months.

A few hours later, Germany’s July exports were reported to have dropped 10% year-on-year, and imports by 6.5%.

For the month, exports had fallen 2.6% and imports 0.7%, reducing the nation’s trade surplus ~€2.1B to €19.4Ten-year bond prices fell sufficiently for yields to turn positive.

UK inflation for the next 12 months was forecast by the Bank of England at 2.2%, following a 2% forecast three months ago.

In US data releases, July wholesale inventories were estimated flat, with sales falling 0.4% against expectations of a 0.2% rise.

No major European or US economic indicators are scheduled for release tonight.

Tata Steel is among companies due to report for the quarter today and tonight.

Overnight Friday, Intel was reported to be supplying wireless chips for some Apple iPhones.