InvestSMART

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.
print
InvestSMART
By InvestSMART · 12 Aug 2013
print
Share
InvestSMART
By InvestSMART ·
12 Aug 2013
Share
comments Comments
print Print
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.
Google News
Follow us on Google News
Go to Google News, then click "Follow" button to add us.
Follow us
Share this article and show your support
Free Membership
Free Membership
InvestSMART
InvestSMART
Keep on reading more articles from InvestSMART. See more articles
Join the conversation
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.

Frequently Asked Questions about this Article…

The Australian sharemarket is expected to open the week flat, with the ASX 200 futures contract trading flat and suggesting a pretty flat start to trade on Monday, according to AMP Capital chief economist Shane Oliver.

Traders are likely to be cautious after volatility on Wall Street and will be weighing negative signals from the US market against other factors like commodity prices.

Stronger commodity prices would help resource stocks, which is one reason traders are balancing US market weakness against the positive impact of higher commodities.

Australian shares finished lower on Friday, with the ASX 200 down 9.6 points (0.19%) at 5055.2 and recording a 1.2% fall for the week. The All Ordinaries was down 8.3 points (0.16%) at 5038.8.

Banks dragged the market down on Friday, contributing to the decline in the ASX 200.

Investors should watch European GDP data for the June quarter due on Wednesday. If the GDP prints positive as expected, it could boost confidence that the global economy is improving and bode well for the local market.

AMP Capital chief economist Shane Oliver provided the commentary, noting that traders would weigh negative US signals against stronger commodity prices and that the flat ASX 200 futures suggested a pretty flat start to trade.

A flat ASX 200 futures contract suggests a muted or flat start to trading, indicating traders expect little movement at the open unless new information arrives.