Slow start to week tipped

AUSTRALIAN stocks are tipped to make a subdued start to the trading week as market players catch their breath after a recent rally.

By InvestSMART · 8 Oct 2012

By InvestSMART ·
8 Oct 2012

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AUSTRALIAN stocks are tipped to make a subdued start to the trading week as market players catch their breath after a recent rally.

CommSec chief economist Craig James says he expects quiet conditions when the local market opens today. "We had a really good gain on Friday and I think investors are just going to bed down those gains," Mr James said.

"Monday will probably be more of a day of consolidation than anything else."

The sharemarket closed Friday's local session up 0.9 per cent, finishing higher for a seventh straight session.

Jobs numbers are expected to be the focus for the local market this week, with the Australian Bureau of Statistics due to publish the September labour force report on Thursday. Economists expect the economy to have added 5000 jobs in the month, and forecast the unemployment rate to rise to 5.3 per cent, from 5.1 per cent in August.

A private-sector job advertisements survey, as well as reports on consumer confidence and business conditions, are also due out this week.

Reserve Bank of Australia deputy governor Philip Lowe is scheduled to speak at a Financial Services Institute of Australasia lunch in Hobart tomorrow.

The Australian dollar finished overseas trading at 101.7 US cents, down from Friday's local close of 102.51 US cents. AAP

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Frequently Asked Questions about this Article…

Why are Australian stocks expected to make a subdued start to the week?

Market commentators say investors are pausing after a recent rally. CommSec chief economist Craig James expects quiet conditions and a day of consolidation as traders 'bed down' the gains from the prior session.

What did CommSec's Craig James say about today's market outlook?

Craig James said he expects the market to be quiet and more about consolidation than fresh moves after a 'really good gain' on Friday, with investors settling recent gains.

How did the sharemarket perform before this expected slowdown?

The local sharemarket closed the prior Friday up 0.9 per cent and finished higher for a seventh straight session, prompting the cautious start to the new week.

Which jobs data will everyday investors be watching this week?

Investors will focus on the Australian Bureau of Statistics' September labour force report due on Thursday, where economists expect around 5,000 jobs added and the unemployment rate to rise to about 5.3 per cent from 5.1 per cent.

What other economic reports are scheduled this week that could affect investor sentiment?

Alongside the ABS labour force report, a private‑sector job advertisements survey and reports on consumer confidence and business conditions are due this week and could influence market sentiment.

Is anyone from the Reserve Bank of Australia speaking this week?

Yes — RBA deputy governor Philip Lowe is scheduled to speak at a Financial Services Institute of Australasia lunch in Hobart tomorrow.

How did the Australian dollar trade at the end of the recent overseas session?

The Australian dollar finished overseas trading at 101.7 US cents, down from the previous local close of 102.51 US cents.