Local Markets Commentary

The Australian market opens a new week’s trade as the US assesses major hurricane damage and massive rainfall and flooding across Texas, the heart of the nation’s petroleum sector.

Up to 25% of Gulf of Mexico crude production is currently estimated to be offline.

In mixed overnight Friday commodities trade, US gold futures settled higher and oil turned so. LME copper traded lower ahead of a public holiday weekend. Iron ore (China port, 62% Fe) swung higher, but Dalian futures later fell.

International equities trade produced no definitive leads.

The $A appreciated beyond US79.30c after trading at ~US79.10c early Friday evening, and this morning has been pushed past US79.45c.

Over the weekend, China’s July industrial profits were reported 16.5% higher year-on-year. January – July profits rose 21.2% on an annual basis.

North Korea fired short-range missiles into the Japan Sea as US and South Korea continued annual military exercises.

Locally today, major reporting season enters its last week, with many high-profile and large-cap stocks yet to lodge results.

Stocks trading ex-dividend include AZJ, CCL and SGR.

Among data releases, a weekly capital city house price report is due pre-trade.

Overseas Market Commentary

Major European and US equities markets largely chopped and swung their way through overnight Friday trade.

Since then, a major hurricane which crossed the Texas coast has caused severe damage to households and civil and industrial infrastructure.

At the annual Jackson Hole central banker forum, US Federal Reserve chair Janet Yellen and European Central Bank (ECB) president Mario Draghi offered no policy change hints.

Ms Yellen, however, promoted adjustments, rather than the loosening of financial sector regulation to the extent promoted by some legislators and administrative officials.

For his part, Mr Draghi promoted a mutual international trade approach in addition to sounding a warning on financial regulation considerations.

Meanwhile, a US presidential tax reform speech was also promised for Wednesday this week.

In US data releases, headline July durable goods orders surprised some on the downside, dropping 6.8% for the month, representing the largest monthly drop since August 2014. Further, this followed a 6.4% rise in June. However, the June gain was attributed to orders received by Boeing and aircraft sector variations often swing the monthly figures.

In Germany, key business indices mostly fell slightly for the month.

Tonight in the US, July wholesale inventories and a trade balance update are due.

Major UK markets, including the LME, will remain closed tonight, due to a public holiday.