Positive open tipped for Aust share market


A positive open is tipped for the Australian share market on the back of stronger than expected jobs figures in the US.

The futures market predicts that the benchmark S&P/ASX 200 will climb 69 points, or 1.2 per cent, when trade resumes on Monday.

This is partially due to Wall Street closing the week at its highest level in two weeks after a strong jobs report and assurances from the US Federal Reserve that the central bank would be patient and flexible in steering the course of interest rates.

However, CommSec chief economist Craig James says the ongoing US government shutdown is seeing investors shift money away from the nation.

Mr James says investors will be keeping a sharp eye on trade talks between the US and China, which are due to begin this week.

China is feeling the effects of the trade war with the US and will this month attempt to stimulate its economy, which will also tickle the local market.

The start of a new calendar year and quarter is seeing investors reassess where they direct their money, Mr James added.

Aside from the trade battle between the US and China, Brexit and the US’ stance on interest rates is holding local investors back.

“What we need is resolution. There’s a lot of uncertainty at the moment,” Mr James told AAP on Sunday.

“People would like a little more information before they start to invest.”

Retail spending data and international trade figures are also due to be released this week.

The benchmark S&P/ASX200 index was down 14 points, or 0.25 per cent, to 5619.4 at 1615 AEDT on Friday.

The Australian dollar is starting to climb back after briefly hitting a low of 67.49 US cents last week, its lowest level since early 2009.



Source link Finance News Australia

Enter your Email Address

Leave a Reply

Your email address will not be published. Required fields are marked *