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State One Market Opener - 31 Oct 2016

Local Markets Commentary

The Australian market opens a new week’s trade:

• ahead of key central bank meetings and data releases throughout the week;

• on largely positive commodities but mostly negative equities leads from overnight Friday trade; and

• amid US presidential election uncertainty.

Locally today, the Reserve Bank of Australia’s (RBA) financial aggregates report, including private sector credit, is due, ahead of the RBA’s policy meeting tomorrow (Melbourne Cup day).

An inflation report from the Melbourne Institute and TD Securities is also expected.

Post-trade, the RBA publishes international liquidity and foreign exchange reserves.

Regionally today, a swag of September economic indicators is due out of Japan, including industrial production. The Bank of Japan (BoJ) also commences a policy meeting, from which outcomes will be known tomorrow.

In overnight Friday commodities trade, oil swung lower. US gold futures and LME copper continued higher. Iron ore turned higher again.

The $A approached US76.0c again after trading at ~US75.85c Friday evening.

Overseas Market Commentary

Major European and US equities markets mostly settled lower overnight Friday, US presidential campaign issues appearing to impact domestic indices, ahead of the 8 November polling date.

In the US, a 2.9% preliminary September quarter GDP growth headline pleased, although a business investment component appeared to concern.

The University of Michigan final October consumer sentiment index fell to 87.2, its lowest reading in 13 months.

Tonight in the US, personal income and spending figures are notably due, ahead of the Federal Reserve’s two-day policy meeting commencing tomorrow night (AEDST). In addition, a Chicago PMI and Texas region manufacturing index are due.

In the euro zone, September quarter GDP and an initial October CPI reading are keenly anticipated.

DBS Group is among companies scheduled to report earnings and/or provide trading updates today and tonight.

Overnight Friday, Chevron lifted its quarterly dividend while reporting 35% lower profit and a 12% revenue fall. Exxon Mobil also reported 12% lower revenue.

31/10/2016 6:50:14 AM

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