Flat session expected in Asian markets Australian consumer sentiment numbers out today

Asian markets are set for a flat session after markets seem to have consolidated recent losses overnight. European banks saw another volatile session with banks swinging between large gains and losses.

Societe Generale SA, which had plunged 8.1%, rallied 15% and BNP Paribas SA added 7.2% following a 12% retreat after the French banks said they are able to finance their operations. Such volatility creates huge trading opportunities.

The most interesting news to come out of the U.S. trading session was Dell’s $5bn after-hours buyback announcement. The deal is worth up to 19% of the company’s current market value, a sign that value is starting to emerge in listed industrial businesses. In its latest quarterly results, Dell profit increased 63% as corporate demand lifted the bottom line, but it lowered its full-year revenue outlook because of slowing sales to consumers.

Other cyclical with balance sheet capacity will be closely eyed, not just in the U.S. but in other development markets like Australia.

In Australia, there is more speculation about the method and timing of Telstra’s capital management, with a share buyback now looking more likely. At current prices, investors are starting to re-evaluate their numbers.

Foster’s beer market share price domestically continues to decline, now down 44.8% in the first three weeks of August which is down 1.9% on the same period last year.

Consumer sentiment reading will be out today, and many market observers are expecting a poor number. It will be interesting to see what the final print actually is.

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