Local Markets Commentary

Positive international equities and commodities leads are in short supply as the Australian market opens today’s trade.

Regionally however, China is expected to release September trade figures, ~1pm AEDST, ahead of CPI data tomorrow.

In overnight commodities trade, oil fell further. US gold futures closed modestly lower. Copper achieved the slightest gain. Iron ore settled unchanged.

The $A slipped to ~US75.6c after trading at ~75.8c yesterday evening.

Locally today, the Melbourne Institute publishes a monthly inflation expectations report and the ABS its annual report.

Overseas Market Commentary

Major European and US equities mostly chopped and swung overnight.

Oil continued lower and a report emerged that UK commitments and liabilities could mean a €20B payment would be due on separation from the European Union.

Apart from the widely broadcast differences on the proposed timing of any move, US Federal Reserve September policy meeting minutes confirmed a majority consensus that more information appeared seemly before a rate move, and that the case for a rise had strengthened.

A job opportunities report estimated a 388,000 fall in openings in August, to an eight-month 5.4M low. 1.62M jobs were lost, against 1.64M in July, and ~3M people resigned.

Weekly mortgage applications dropped 6% amid rates at one-month highs.

In the euro zone, August industrial production jumped 1.8% year-on-year and 1.6% for the month, after falling 0.7% and 0.5% respectively in July.

Tonight in the US, new unemployment claims are due, together with import and export prices.

A Federal Reserve regional president is scheduled to speak on US and international economic outlooks at the World Affairs Council, ahead of a speech by chair Janet Yellen at an economics conference tomorrow night.

Unilever, Sky, Delta Air and Smiths Group are due to report results and/or provide trading updates.

Overnight, US regulators said Deutsche Bank would pay a $US9.5M settlement allegations of issuing an ‘improper’ research report.

Yesterday, Samsung estimated quarterly operating profit would drop 33% beneath previous guidance, on Galaxy Note 7 woes.

In early European trade, Ericsson also delivered a profit warning, prompting an ~20% drop in the company’s stock price.