US rally to gives shares a boost
On Wall Street, the S&P 500 finished about 0.3 per cent higher on Friday, the Dow Jones Industrial Average was flat and the Nasdaq Composite Index closed 0.61 per cent higher.
In futures trading on the ASX 24, the September share price index futures contract was pointing to a slight gain on Monday, trading 14 points stronger at 4950.
At the close on Friday, the ASX 200 index was up 8.2 points, or 0.17 per cent, at 4973.9.
CommSec chief economist Craig James said the futures trading indicated Australia might play "follow the leader" to the US.
Higher base metals prices might also help the market, with the spot iron ore price trading above $US125 a tonne on Friday.
"Those Chinese GDP figures include economic growth, production, retail spending and the like and can be a real market turner," Mr James said.
He pointed to the release of weaker than expected Chinese import-export prices last week as evidence and the negative effect this had had, with investors worrying about Chinese growth.
It will be a big week in the US for the release of quarterly corporate earnings, which could influence the Australian market.
The Australian dollar was trading at three-year lows at US90.45¢ on Sunday.
Frequently Asked Questions about this Article…
The Australian sharemarket was expected to start the week in fairly flat territory after modest gains in the US late on Friday. ASX futures were pointing to a slight gain, and the ASX 200 had closed the previous Friday up 8.2 points (0.17%) at 4,973.9.
On Friday the S&P 500 finished about 0.3% higher, the Dow Jones Industrial Average was flat and the Nasdaq closed 0.61% higher. CommSec chief economist Craig James said ASX futures suggested Australia might "follow the leader" and play catch-up with US gains.
China is Australia’s most important trading partner, and Monday’s release of Chinese GDP data — covering growth, production and retail spending — can be a real market turner for Australian stocks if the figures surprise to the upside or downside.
Yes. Higher base metals prices may help the market, and the article noted the spot iron ore price was trading above US$125 a tonne on Friday, which can be supportive for resource-heavy Australian equities.
The article highlighted weaker-than-expected Chinese import-export prices released last week, which had a negative effect as investors grew more worried about Chinese growth prospects.
Yes. It will be a big week in the US for quarterly corporate earnings, and those results could influence investor sentiment and spill over into the Australian market.
In ASX 24 futures trading the September share price index contract was trading 14 points stronger at 4,950, pointing to a slight gain for Monday’s session.
The Australian dollar was trading at three-year lows, at about US90.45¢ on Sunday. Currency moves are a key part of market conditions that investors monitor alongside stocks and commodity prices.
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