Local Markets Commentary

The Australian market commences today’s trade on no new US equities or commodities leads, mixed leads otherwise, and ahead of an RBA policy meeting outcomes statement and updated regional data.

Regionally today, Caixin releases its final August services sector and composite PMIs for China 11.45am AEST.

Japan’s final August PMI readings are expected 10.30am.

Locally today, the Reserve Bank of Australia (RBA) holds a policy meeting from which a statement will be released 2.30pm.

Pre-trade, an August services sector activity index and weekly consumer sentiment reading are due.

The ABS publishes June quarter current account figures 11.30am. August vehicle sales are due midday.

Large-cap stocks trading ex-dividend today include BEN, BLD, RHC and SRV.

In overnight commodities trade, LME gold futures rallied. Brent crude was pushed lower. LME copper continued higher. Iron ore (China port, 62% Fe) declined.

The $A traded lower again after approaching ~US79.55c early yesterday evening.

Overseas Market Commentary

Major European equities markets headed lower on opening overnight, amid response uncertainty regarding North Korea’s weekend bomb test, and as South Korea warned the north was preparing to launch an ICBM.

US equities markets did not trade due to a public holiday.

At the BRICS annual summit, hosted by China, China pledged co-operative development funding and the group stated its opposition to trade protectionism.

Separately, China reacted negatively to the US president’s threat to curtail US-China trade in response to China continuing to export to North Korea.

Other statements are keenly anticipated in association with today’s conclusion of the BRICS summit.

Among overnight euro zone data releases, July producer prices were reported steady for the month following a 0.2% fall in June. Prices were 2% higher for the year.

An investor sentiment index represented an improvement on June and exceeded forecasts.

Tonight in the US, July factory orders are due, together with ISM’s New York business activity index and an economic optimism report.

Public speeches by three Federal Reserve officials will be parsed for definitive clues ahead of next week’s policy meeting.

Hewlett Packard Enterprise is among companies scheduled to report earnings.