Reports to guide market
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 out on Wednesday and the Australian Bureau of Statistics' labour force figures will be issued on Thursday.
Mr James said investors would still 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, or 0.28 per cent, at 14,564.71.
Frequently Asked Questions about this Article…
The article says local markets were set to open lower after falls on Wall Street and in Europe. Futures were pointing to a small fall, and CommSec chief economist Craig James expected the ASX to open 15–20 points lower, reflecting recent overseas weakness and a weak US labour report.
June share price index futures were showing a modest fall (about five points to 4,890), which signals expected market weakness at the open. Futures give an early market read, but analysts like Craig James expected the actual local open could move more (15–20 points lower), so investors should use futures as a guide, not a certainty.
According to CommSec’s Craig James in the article, a weaker dollar can cushion the local market because it helps companies with an overseas focus (by boosting competitiveness or earnings in foreign currencies) and can attract more foreign investors to Australian assets.
The article highlights a slate of domestic data: ANZ’s March job advertisements (Monday), NAB’s monthly business survey (Tuesday), the Westpac/Melbourne Institute consumer sentiment survey (Wednesday), and the ABS labour force figures (Thursday). It also notes Chinese and US economic data and geopolitical developments in North Korea as important overseas items to monitor.
Craig James in the article says job ads still get attention, but they’re becoming less important than in the past because employers increasingly use platforms like Facebook and LinkedIn to find staff, meaning job-ad counts may not capture the full picture of hiring activity.
The article notes a weak US labour report for March that Australian investors had already largely factored in. That weaker US data contributed to falls overseas and was part of why local markets were expected to open lower, though the effect on Australia might be softened by other factors like a weaker dollar.
The article advises investors will be keeping an eye on any developments in North Korea, along with Chinese and US economic data. Geopolitical events can create market volatility, so monitoring these developments is sensible for everyday investors.
The article reports the Dow Jones closed down 41.40 points (0.28%) at 14,564.71 on Friday. Weakness in US and European markets often influences Australian market sentiment and can lead to a softer ASX at the open, so international close levels are useful context for local investors.
Call 1300 880 160
Start a chat
Schedule a call
