Local Markets Commentary

The Australian market opens today’s trade on improved US equities sentiment.

In overnight commodities trade, oil turned and rallied. US gold futures and LME copper settled slightly lower. Iron ore fell further.

The $A traded in a relatively small range after briefly falling below ~US76.10c yesterday evening.

Locally today, August trade figures are due 11.30am AEDST.

China’s markets remain closed until next week. September foreign reserves are anticipated anytime from tomorrow.

Overseas Market Commentary

Major European and US equities markets respectively switched direction overnight.

Higher oil prices and improved finance sector sentiment supported gains, but European trade reacted to the late-Tuesday reports that the European Central Bank (ECB) may not continue with current asset purchase levels past March 2017.

Something to support almost every economic view could be found in US data releases.

ISM’s September services sector activity index jumped 5.7 points to 57.1, against expectations of ~53. Moreover, the employment component put on 6.5 points to 57.2.

Markit’s final September services PMI rose 1.3 for the month to 52.3, improving at the best rate in five months.

An ADP report estimated 154,000 private sector jobs were added in September, undershooting expectations a little, ahead of Friday’s government department national employment report.

August factory orders rose 0.2%, following expectations of an up to 0.2% pullback, and at best 0.1% gain.

The national August trade deficit grew 3% to $US40.73B, on a greater-than-anticipated impact from imports, and against expectations of a $US39B result.

Earlier in the euro zone, August retail sales fell 0.1% for the month, but were 0.6% higher year-on-year. The figures surprised some, largely due to a significant revision of July’s 1.1% monthly gain to a 0.3% improvement, and the year-on- year rise from 2.9% to 1.8%.

The final September services PMI came in at 52.2, 0.6 lower for the month, and the composite PMI down 0.3, at 52.6.

The UK services PMI was also calculated 0.3 lower, at 52.6.

Tonight in the US, weekly new unemployment claims and a job layoffs report are due, ahead of tomorrow night’s national September employment figures.

Yum Brands, Constellation Brands and easyJet are listed among companies expected to release results.