Local Markets Commentary

The Australian market opens a new week’s trade on negative international equities leads.

Since then, BIS Shrapnel has warned of increasing risks for a banking crisis in China, and demonstrated a further slowdown in global lending, particularly in $US-credit to emerging markets during the March quarter.

Commodities leads are also mostly negative. Overnight Friday, oil swung lower. Gold continued lower. LME copper settled with a third consecutive slight gain.

The $A slipped a little after trading at ~US75.0c Friday evening, but has been climbing this morning.

Regionally today, China’s markets resume trade. August property prices are expected 11.30am AEST.

Locally today, the monthly Conference Board leading index report is due.

Companies trading ex-dividend include RSG and VOC. Please see pp2-3 for a detailed list.

Japan’s markets will be closed today due to a public holiday.

Overseas Market Commentary

Major European and US equities markets turned lower overnight Friday.

Sentiment was down across the energy and finance sectors, and a surprise US data release unsettled. US futures and options also expired.

Pre-US trade, 0.2% August CPI growth was reported double expectations, following a flat result for July.

Annually, CPI was 1.1% higher, the core (excluding food and energy) reading climbing to 2.3%.

This complicated predictions for US rate rise timing, three sessions ahead of a new Federal Reserve policy statement early Thursday AEST.

Later Friday, an 89.9 University of Michigan initial September consumer sentiment reading represented no change from August and was one point lower than forecasts.

Meanwhile, Russia’s central bank reduced its key interest rate 0.5% to 10%, stated it would retain this rate at least until year’s end, but also suggested further reductions could be required during 2017.

Tonight in the US, a housing market index is due.

Also overnight Friday, Deutsche Bank shares dropped in US and European trade, impacting financial sector sentiment. Deutsche Bank vowed to negotiate a lesser penalty than the $US14B proposed by the UIS Department of Justice following an MBS investigation.

Intel cited an improvement in personal computer demand while lifting September quarter sales guidance.

Late Thursday, reports emerged, Unilever was considering outlaying ~$US1B for Honest Co, which owns the Dove brand of personal consumer products.