Local Markets Commentary
The Australian market opens a new week’s trade on heightened US – Middle East tensions and an $A pull back, as key regional markets remain closed for public holidays, and ahead of a significant reorganisation of US S&P equities sectors tonight.

In addition, overnight Friday international equities trade proved notably mixed. 

In overnight Friday commodities trade, oil settled higher, more so WTI crude than Brent. 

US (December) gold futures swung lower.

Iron ore (62% Fe, China port) continued slightly lower.

LME copper and other key base metals were pushed sharply higher.

The $A moved around US72.90c after trading at ~US73c early Friday evening, but has fallen this morning.

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

Stocks trading ex-dividend today include CAR and CNU. Please see p3 for additional companies and details.

Markets in China, Japan and South Korea will be closed today due to public holidays.

Overseas Market Commentary
Major European and US equities markets diverged overnight Friday, the S&P 500 and NASDAQ notably heading lower in early trade. 

In the UK, public sector borrowing rose by more than anticipated in August, reaching £6.8B from £4.4B a year earlier. 

Meanwhile, the PM challenged the European Union (EU) to start offering compromise suggestions rather than just outright reject the UK’s proposal for regulations governing key business, finance, trade and immigration relationships following the UK’s planned separation from the EU.

Otherwise, the PM suggested, there was currently no way forward. The British pound subsequently fell.

Germany’s initial September manufacturing PMI fell 2.2 to 53.7, but the services PMI rose 1.5 to 56.5. 

For the overall euro zone region, the PMIs came in respectively at 53.3 (down 1.3) and 54.7 (up 0.3). 

Markit estimated a 55.6 initial September manufacturing PMI for US, following 54.7 in August, and 52.9 for the services sector, after 54.8.

The ISM’s figures are now more keenly anticipated, given services industries are estimated to account for ~67% of the US economy.

Tonight in the US, the Chicago Fed national activity and Dallas Fed manufacturing indices are due. 

Elsewhere, European Central Bank (ECB) president Mario Draghi is again scheduled to speak publicly, after last week promoting co-operative bank liquidity regulations and a regional crisis fund to euro zone governments. 

In corporate news since Friday’s ASX close, Comcast outbid competitor Twenty-First Century Fox, and in association Walt Disney, in an auction for the balance of Sky Plc.

Twenty-First Century Fox holds 39% of Sky. The auction was initiated by the UK Takeover Panel, but the final outcome hangs on shareholder approvals.

Comcast will pay ~$US40B and gain status as the largest operator of pay TV networks. 

Amid the overnight Friday corporate earnings reporters, chip manufacturing Micron suffered after delivering a disappointing forecast

In the meantime, another Tesla executive, this time VP global supply management, was reported to have resigned.

Appetite for McDonald’s rose ~2% on a 15% quarterly dividend boost.

This week, new Apple phone and watch sales will be closely monitored.

A major change comes into effect tonight (ie prior to the commencement of Monday trade) for the S&P Dow Jones Indices’ Global Industry Classification Standard (GICS), in particular regarding technology, media and consumer classifications. 

Google parent Alphabet, Amazon, Facebook an, Netflix move from the IT sector into ‘communications services’, which also includes large entertainment/media stocks currently residing in the consumer discretionary sector.

Apple remains within the S&P technology index with a 20% weighting against the former 16%.