Local Markets Commentary

The Australian market opens on no US leads, due to a Monday public holiday keeping markets closed overnight.

Locally today however, the Reserve Bank of Australia (RBA) convenes a policy meeting, the last under governor Glenn Stevens. An outcomes statement is due 2.30pm AEST.

June quarter current account and government finance statistics are due from the ABS 11.30am.

A weekly consumer sentiment reading is due pre-trade.

Several highly-traded stocks turn ex-dividend today, including AMC, BEN, BKL, IAG, MPL and RHC.

In overnight commodities trade, LME gold futures settled slightly higher and copper barely changed. Brent crude continued higher. Iron ore was pushed modestly lower.

The $A traded mostly in a high-US75c range after trading at ~US76.0c early yesterday evening.

Overseas Market Commentary

Choppy trade featured across major European equities markets overnight, support from some positive oil market trade, reduced September rates expectation from Friday’s US jobs report, and indications the Bank of Japan was prepared to initiate further stimulus, unable to produce ultimate gains.

US markets remained closed due to a public holiday.

The UK’s the August services PMI provided cheer, reported at 52.9, following 47.4 in July. The British pound consequently traded at seven-week peaks against the $US.

In the euro zone, the composite PMI for August was revised to 52.9, from the initial 53.3 estimate, and against July’s 53.2. Germany’s services sector PMI appeared to concern, falling from 54.4 to 51.7 for the month.

Tonight in the US, ISM’s non-manufacturing activity index is due, together with final services and composite August PMIs from Markit. An economic optimism index is also due, together with a labour market conditions report.

The US president is scheduled to speak at an East Asia leader’s summit which commences in Vientiane, Laos later today.

US parliament also returns following a seven-week summer break.

In corporate news, container freight shipper Hanjin confirmed early yesterday that it had filed for bankruptcy protection in the US late last week.

Earlier last week, Hanjin’s creditors reportedly refused to offer further support, with the company’s debt reaching $US5.4B. Some Hanjin ships have been seized at ports and Hanjin wants to prevent this for vessels enroute to the US.