Risk and Relax
A better, albeit shortened, trading week beckons following gains in US and European shares on Friday night. The local futures expiry last week, and fairly clear market calendar mean trading is likely to quieten down with a positive bias as investors prepare for the Easter long weekend.
Futures markets are pointing to a lift of around 0.5% at this morning’s open. However a lack of potential de-railers this week could see higher levels, especially if the Australia 200 index can clear 5,200 convincingly. The higher AUD is complicating matters, but may be a source of support if international investors believe the rise in the currency will continue. Banks may receive support after comments last Friday from the RBA’s Dr Ellis that housing in Australia appeared stable.
Mixed commodity moves may muddy the waters. Iron ore is up, but oil is down. Gold is holding firm above US $1,250. The Materials and Energy sectors led the gains last week, but may be overtaken in trading today. The mid-session release of China’s March business activity indicator may get see more commodity price co-ordination.
Frequently Asked Questions about this Article…
The Australian stock market is expected to have a positive bias this week, with futures markets indicating a potential lift of around 0.5% at the morning's open. The absence of major market disruptions and the upcoming Easter long weekend may contribute to a quieter trading environment.
The higher Australian dollar could be a source of support for international investors if they believe the currency's rise will continue. This could influence their investment decisions in the Australian market.
Last week, the Materials and Energy sectors led the gains in the market. However, these sectors may face competition in trading today due to mixed commodity movements.
Commodity prices are showing mixed movements, with iron ore prices up and oil prices down. Gold remains stable above US $1,250. These fluctuations may influence market dynamics, particularly in the Materials and Energy sectors.
Comments from the Reserve Bank of Australia's Dr. Ellis last Friday suggested that housing in Australia appears stable. This may provide support to banks and influence investor sentiment positively.
The mid-session release of China's March business activity indicator could lead to more coordinated commodity price movements, potentially impacting market sectors reliant on commodity exports.
Trading might be quieter this week due to the local futures expiry last week, a fairly clear market calendar, and the upcoming Easter long weekend, which typically sees reduced market activity.
Potential challenges for the market this week include the higher Australian dollar, which complicates matters, and mixed commodity price movements that could create uncertainty in certain sectors.
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