Local Markets Commentary

The Australian market commences Friday trade on negative equities and mixed commodities leads.

Regionally today, China’s September CPI is anticipated ~12.30pm AEDST.

Locally, the Reserve Bank of Australia (RBA) publishes its six-monthly financial stability review. August lending finance is also due, from the ABS.

In overnight commodities trade, gold and oil turned to settle higher. LME copper dropped. Iron ore recorded a slight gain.

The $A climbed to ~US75.7c after trading at ~US75.2c yesterday evening.

Overseas Market Commentary

Major European and US equities fell on opening overnight, US indices ultimately recovering some ground.

Global economic growth fears appeared to douse risk sentiment, not only on some disappointing trade data out of South Korea and China yesterday, but also on an influential economists’ survey which predicted a US recession within four years.

Germany’s final September CPI reading backed up the initial estimate of a 0.1% gain for the month and 0.7% year-on-year.

In data releases, US weekly new unemployment claims came in steady, at 246,000, against expectations of an 8000 rise.

September import and export prices were reported respectively 0.1% and 0.3% higher.

Tonight in the US, Federal Reserve chair Janet Yellen is scheduled to speak at an economics conference.

September retail sales and producer prices are also due, together with a New York region manufacturing index, August business inventories and a key consumer sentiment reading.

Wells Fargo, JP Morgan Chase and Citigroup are due to report results and/or provide trading updates.

Sovereign rating updates are due for Russia, Spain and Greece.

Meanwhile, India will host a BRICS summit over the weekend. Any new deals and alliances involving Russia, China and/or Brazil will attract particular notice.