Australian shares are set for an uninspiring start to the week following falls across the United States and Europe, and amid the former’s tariff tit-for-tat with China.
It means the local market will likely give back some of Friday’s gains, after the benchmark S&P/ASX200 closed up 77.4 points, or 1.29 per cent, at 6,094.0, and the All Ordinaries index up 75.7 points, or 1.23 per cent, at 6,205.3 points.
‘We had a good gain on Friday but it looks like we’ll give back some of that on Monday. I would expect something like a 25 point, 30 point fall,’ CommSec chief economist Craig James told AAP on Sunday.
‘There wasn’t too much positive the late in the day on Friday. The US and China were trading blows in terms of threats for a tariff war.
‘It’s hardly the inspiring lead-in for out market.’
However, Mr James said a softer Australian dollar, which was sitting around 74.4 cents, would offset some of the falls in commodity prices.
‘It’s the weakness of the currency which is the main positive element coming through.’
Internationally, most of the interest will be on trade discussions between the US and China as well as Friday’s meeting between OPEC and non-OPEC nations.
In local economic data, the Australian Bureau of Statistics’ house price index is set be released on Tuesday, with CommSec expecting a fall of 1.1 per cent over the March quarter.
The release of the Reserve Bank of Australia’s June meeting minutes on Tuesday will be studied for an assessment of wages, inflation trends, housing market conditions and prospects of further tightening in lending standards.
A breakdown of jobs figures by industry and population data is also expected later in the week, with the latter likely showing annual growth of between 1.6 and 1.7 per cent, Mr James said.