US jobs data most likely to push bourse higher
Australian shares are expected to open modestly firmer as investors react to Tony Abbott's election victory and moderate US employment growth.
But the incoming government's pledge to repeal the mining tax is not expected to boost BHP Billiton and Rio Tinto on Monday.
CommSec chief economist Craig James said finance groups offering novated car leasing, such as McMillan Shakespeare, are more likely to move higher as investors warm to a Coalition pledge to reverse Labor's tightening of fringe benefit tax rules.
"It had been rallying on the expectation of a Coalition victory so there may be some further modest gains for the FBT and packaging-type companies," he said. "They're the main short-term beneficiaries."
The pledge to repeal the mining tax is unlikely to help the resource giants since Labor's policy raised far less than the $2 billion it was forecast to amass in its first year. "Really, the mining tax hasn't been a great earner for the government anyway so it's not a major consideration for the major miners," Mr James said.
With a Coalition victory already factored in, investors are more likely to react to US Labour Department data showing 169,000 non-farm jobs were created in August.
While the American unemployment rate fell to 7.3 per cent, the lowest since December 2008, the increase in payrolls was below market expectations of 177,000 new jobs, which contributed to a flat finish on Wall Street on Friday night.
But the Australian market is expected to post a 10 to 20-point increase as investors see the modest US jobs growth as a positive sign.
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