After a flat start market should pick up on expected good news from EU
The Australian sharemarket is expected to open the week flat, with traders likely to be cautious following volatility on Wall Street. AMP Capital chief economist Shane Oliver said traders would be weighing up negative signals from the US market against stronger commodity prices, which would help resource stocks. "Consequently, the futures contract for the ASX 200 was flat on Friday, suggesting a pretty flat start to trade on Monday," Dr Oliver said. Australian shares finished lower on Friday, dragged down by the banks. The ASX 200 Index was down 9.6 points, or 0.19 per cent, at 5055.2, a 1.2 per cent fall for the week. The All Ordinaries was down 8.3 points, or 0.16 per cent, at 5038.8. Dr Oliver said traders would also be looking closely at European GDP data for the June quarter due out on Wednesday. "If it's positive, as expected, it will add to confidence that the global economy is on the mend, which should bode well for the local market," he said.
InvestSMART FORUM: Come and meet the team
We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free