China data could spark sharemarket
But the release of Chinese economic growth figures on Monday for June and the June quarter could end up being a strong market mover.
On Wall Street, the S&P 500 finished about 0.3 per cent higher on Friday, the Dow Jones Industrial Average was flat and the tech-rich Nasdaq Composite Index closed 0.61 per cent higher.
In futures trading in Australia on the ASX 24, the September share price index futures contract was pointing to a slight gain on Monday, trading 14 points stronger at 4950.
The ASX200 Index of Australia's largest companies had a good week last week, posting gains of an average 2.7 per cent.
CommSec chief economist Craig James said the futures trading indicated Australia might play "follow the leader" to the US. Higher base metals prices might help the Australian market, while the spot iron ore price was up above $US125 ($136.88) a tonne on Friday.
"Those Chinese GDP figures include economic growth, production, retail spending and the like and can be a real market turner," Mr James said.
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The Australian sharemarket was expected to start the week in flat territory after modest gains in the US the prior Friday. ASX24 futures were pointing to a slight gain for Monday, suggesting a cautious open rather than a big move.
Chinese economic growth figures for June and the June quarter could be a strong market mover for Australian shares because they include measures such as growth, production and retail spending. Positive or negative surprises in those numbers can quickly influence investor sentiment and commodity demand.
On Wall Street the S&P 500 finished about 0.3% higher, the Dow Jones Industrial Average was flat, and the Nasdaq Composite rose 0.61%. Those modest US gains matter because Australian markets often 'follow the leader'—stronger US performance can support a firmer open in Australia.
ASX24 futures showed the September share price index contract trading 14 points stronger at 4950, which pointed to a slight gain on Monday rather than a large move up or down.
The ASX200, which tracks Australia's largest companies, had a good week and posted average gains of 2.7% in the prior week.
Craig James said futures trading suggested Australia might 'follow the leader' and mirror US moves. He also noted that higher base metals prices could help the Australian market, while the upcoming Chinese GDP figures could be a real market turner.
Iron ore and other base metals matter because they influence earnings and sentiment for resource-heavy Australian companies. The article notes the spot iron ore price was above US$125 (about $136.88) a tonne, and rising base metals prices could support broader market gains.
The Chinese GDP release includes measures of economic growth, production and retail spending. These components together give a snapshot of demand and activity in China, and surprises in any of them can alter global commodity prices and sharemarket direction.
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