The Australian sharemarket is expected to start the week on a positive note as investors shrug off the impact of the US government shutdown.
CommSec chief economist Craig James said global markets rallied on Friday night Australian time, despite being well aware of the prospect of a US shutdown.
He said local traders were unlikely to be bothered by the outcome either, with S&P/ASX200 futures pointing to a 0.5 per cent gain on Monday.
The US government has gone into shutdown after the Senate failed to pass a spending bill because of an impasse between Democrats and Republicans over immigration reform.
Mr James said the last US government shutdown in 2013 had not had a major impact on the US or global economies.
‘A lot of the global investment banks have come out with reports about the shutdown and the likely implications and a look back at past experiences and there hasn’t been a significant longer-term impact,’ he said.
He said gains in iron ore and gold prices should provide a boost to mining stocks while a slight decline in the Australia dollar should help lift companies with substantial international earnings.
The S&P/ASX200 finished the week 0.1 per cent lower at 6,005 points, capping off a disappointing week for the local market relative to global counterparts.
‘US markets were up around one per cent for the week and we were down around one per cent, so perhaps we can recoup some of that loss on Monday.
The Australian dollar most recently traded at 79.83 US cents.