China, US data to guide local bourse
The Australian market is expected to open lower on Monday after falls on Wall Street and in Europe.
The June share price index futures contract is pointing to a five-point fall to 4890. But CommSec chief economist Craig James says he expects the local market to open as much as 15 to 20 points lower. He expects the fall to be less severe than in some overseas markets as local investors have already factored in Friday's weak US labour report for March.
He said the weaker dollar might also cushion the local market's fall as it helps companies with an overseas focus and attracts more foreign investors.
ANZ will release its data on March job advertisements on Monday and National Australia Bank will issue its monthly business survey on Tuesday. The Westpac/Melbourne Institute consumer sentiment survey is due on Wednesday and the Bureau of Statistics' labour force figures will be issued on Thursday.
Mr James said investors would take note of the job ads figures but they were becoming less important as employers explored other avenues, such as Facebook and LinkedIn, to find staff. "They don't provide the same insights as they might have five or 10 years ago.
In the US on Friday, the Dow Jones Industrial Average closed down 41.40 points at 14,564.71.
Frequently Asked Questions about this Article…
Everyday investors will be watching Chinese and US economic data closely this week, along with any developments involving North Korea, all of which can influence market sentiment and the local bourse.
The market is set to open lower following falls on Wall Street and in Europe. Local futures are pointing down and CommSec chief economist Craig James expects the ASX to open about 15 to 20 points lower, noting many investors have already priced in Friday's weak US labour report.
June share price index futures were pointing to a modest fall, about five points to 4,890, while CommSec's Craig James suggested the actual open could be as much as 15 to 20 points lower.
A weaker dollar might cushion the local market's fall because it helps companies that focus on overseas markets and can make Australian assets more attractive to foreign investors.
Key domestic releases include ANZ’s March job advertisements on Monday, National Australia Bank’s monthly business survey on Tuesday, the Westpac/Melbourne Institute consumer sentiment survey on Wednesday, and the Bureau of Statistics’ labour force figures on Thursday.
According to Craig James, job ad figures are becoming less important because employers increasingly use platforms like Facebook and LinkedIn to recruit, so they don't provide the same insights they did five to ten years ago.
On Friday the Dow Jones Industrial Average closed down 41.40 points at 14,564.71. US market moves matter because they influence global risk sentiment and can help set the tone for the Australian market open.
Investors should monitor incoming China and US data, watch local economic releases (job ads, business surveys, sentiment, and labour force figures), be aware that currency moves can cushion or amplify local market moves, and note that markets may have already priced in some US data surprises.
Call 1300 880 160
Start a chat
Schedule a call
