Overall gain likely, despite mixed data from China
Investors are also awaiting more news about the strength of the local retail sector with the nation's biggest department store Myer to release its half-year result on Thursday.
Australian futures markets point to a 20-point gain at the open after the US unemployment rate fell to 7.7 per cent on Friday.
AMP Capital economist Shane Oliver said local investors would be buoyed by the momentum in the US and gains in Europe on Friday.
"The only complication is the mixed data released from China yesterday, which may confuse investors because inflation was slightly higher and industrial production and retail sales were somewhat weaker, particular retail sales," Mr Oliver said. "That could create some confusion and act as bit of a drag on resources stocks, depending on how investors interpret the Chinese data. But overall I'd expect we'll have a fairly decent gain."
Chinese inflation hit a 10-month high in February, while growth in industrial production and retail sales slowed, official data released on Saturday showed.
Meanwhile, the Dow Jones Industrial Average set a record for the fourth straight session on Friday helped by solid jobs data that was nonetheless seen as unlikely to move the Fed to tighten monetary policy.
The US Labor Department reported that the economy generated a net 236,000 new jobs last month, far more than expected, lowering the unemployment rate to 7.7 per cent from 7.9 per cent.
At the local close on Friday, the benchmark S&P/ASX 200 index was 14.2 points, or 0.28 per cent, higher at 5123.4, while the broader All Ordinaries index was up 14.4 points, or 0.28 per cent, at 5137.5.
Both main ASX indices, the S&P/ASX 200 and the All Ordinaries, finished the week almost three-quarters of a per cent higher.
National Australia Bank's monthly business survey released on Tuesday will be followed by the Westpac-Melbourne Institute survey of consumer sentiment and housing finance figures on Wednesday. National jobs figures are due out on Thursday.
Myer will release its half-year profit result on Thursday with investors and analysts looking for insight on Christmas retail conditions and how retailers such as Myer performed. Rival David Jones will announce its half-year result on March 20.
Frequently Asked Questions about this Article…
The market is tipped to open higher after strong US jobs figures and gains in Europe boosted sentiment. Australian futures pointed to about a 20‑point gain following a fall in the US unemployment rate to 7.7% and a string of record sessions for the Dow Jones.
The US Labor Department reported a net 236,000 new jobs and a drop in unemployment to 7.7%, which helped lift US markets and is likely to buoy Australian investors. Economists noted the data was strong but seen as unlikely to force the Federal Reserve into tighter monetary policy, reducing the risk of an immediate negative shock to markets.
China reported inflation at a 10‑month high for February while industrial production and retail sales slowed. That combination — higher inflation with weaker activity and retail sales — could confuse investors and may act as a drag on resources and related stocks depending on how the data is interpreted.
Investors should watch Myer’s half‑year profit result due on Thursday for clues about Christmas retail conditions and retailer performance. Rival David Jones is scheduled to report its half‑year result on March 20, which will also provide useful retail sector insight.
At the local close on Friday the S&P/ASX 200 was up 14.2 points (0.28%) at 5,123.4 and the All Ordinaries rose 14.4 points (0.28%) to 5,137.5. Both indices finished the week roughly three‑quarters of a percent higher, signalling modest positive momentum for the Australian market.
Key local data include the National Australia Bank monthly business survey (Tuesday), the Westpac‑Melbourne Institute consumer sentiment survey and housing finance figures (Wednesday), and national jobs figures due on Thursday. These releases can influence short‑term market sentiment and help investors gauge local economic strength.
Yes — the article notes that mixed Chinese data (higher inflation but weaker industrial production and retail sales) could create confusion and act as a drag on resources stocks, depending on how investors interpret the outlook for Chinese demand.
According to the article, while US jobs were solid enough to lift markets, analysts saw the data as unlikely to prompt the Federal Reserve to tighten policy immediately, which helped sustain positive market momentum.
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