Local Markets Commentary

The Australian market opens a new week’s trade with fresh data out of China over the weekend and

three major domestic stocks trading ex-dividend. Yesterday, China reported September quarter

foreign investment in China’s financial sector tallied $US2.9B. Outflows totalled $US2.64B.

Net offshore investment by Chinese financial institutions totalled $US1.75B.

In largely negative overnight Friday commodities trade, oil dropped further.

US (December) gold futures,and LME copper, nickel and aluminum fell.

Iron ore (China port 62%Fe) extended Thursday’s rally.

The $A slipped to US72.25c after trading at US72.45c early Friday evening.

Locally today, a weekly capital city residential property price report is duepre-trade.

The Reserve Bank of Australia (RBA) releases card transaction figures,11.30am AEDT.

ANZ,MQG and ORI trade ex-dividend.

Overseas Market Commentary

Most major European and US equities markets and never seriously looked like recovering.

Germany’s DAX proved the exception, pulled higher in second-half trade, despite marked vacillations, as the euro traded at 16-month lows against the $US.

Following talks with US secretary of state Mike Pompeo,China’sOffice of Foreign Affairs director

Yang Jiechi and Politburo Member Yang Jiechi publicly promoted‘dialogue and consultation’,

warning any trade conflict extension threatened not only the economies of the US and China, but also international economic health.

Earlier Friday, China had reported a fourth consecutive month of slowing producer prices, and

an almost 12% drop in October vehicle sales. Early overnight Friday data releases included a

batch of mixed key UK economic indicators.

A preliminary September quarter GDP growth estimate came in at 0.6% for the three months and

1.5% year-on-year. June quarter GDP advances had been finalized at 0.4% and 1.2% respectively.

The nation’s September trade deficit, also published Friday,improved to £270M, from £2.1B at the end of August.

Industrial production was deemed stagnant for the month, and year-on-year, following a 1% year-on year August rise. August monthly industrial production was also reported flat.

Construction output rose 3% year-on-year, after 1 0.5%improvement in August.

Meanwhile, the government’s transport minister resigned his ministerial position, and from

government, over dissatisfaction with negotiations for the UK’s planned separation from the European Union (EU).