Local Markets Commentary

The Australian market commences end-of-month trade on positive international equities but negative commodities leads, ahead of influential domestic and regional data.

China reports official August PMIs 11am AEST. A manufacturing PMI, as estimated by Caixin, is due tomorrow.

Pre-ASX trade, Japan releases preliminary July industrial production figures.

Locally today, July private sector credit is due within the monthly financial aggregates report from the Reserve Bank of Australia (RBA) 11.30am AEST.

June quarter capital expenditure is also expected from the Australian Bureau of Statistics (ABS).

July new home sales are scheduled for release from the HIA.

NVT and TWE are among companies trading ex-dividend today.

In overnight commodities trade, US gold futures turned lower. Oil fell further. Iron ore (China port 62% Fe) also continued to decline. LME copper and other key base metals swung lower.

The $A fell towards US79.0c after being pushed to US79.70c early yesterday evening. The pullback commenced relatively early, on a US growth report.

Overseas Market Commentary

Major European and US equities markets headed higher on or near opening overnight.

In data releases, Germany’s initial August CPI estimate was reported as a 0.2% rise for the month and 1.8% annual growth.

In the US, a second reading of June quarter GDP surprised on the upside, coming in at 3% year-on-year growth, against the initial 2.6% estimate and 1.2% for the March quarter. A third and final June quarter reading is yet to come.

A private sector employment report estimated 237,000 jobs were created in July, following forecasts of as few as 185,000.

Meanwhile, in a speech directed at tax change plans, US president Donald Trump summarised his targets as a competitive and simple system, including international corporate tax changes, and relief for business and middle income earners.

Tonight in the US, weekly new unemployment claims are due, together with July personal income and spending, pending home sales and a Chicago PMI update.

Meanwhile, US markets are heading towards a Monday public holiday weekend, meaning trade tomorrow night, following the national monthly employment figures, is expected to turn comparatively quiet.