The Australian share market is expected to have a soft start to the week after a busy Friday night on US and European markets amounted to little.
The ASX200 futures contract was down seven points at the close on Friday and is suggesting a start five or 10 points lower come Monday.
‘Basically we’ve seen Wall Street and European markets rally not much though, it was only small moves,’ AMP Capital’s chief economist Shane Oliver told AAP on Sunday.
‘European markets are up about about .2 per cent, the Dow Jones had a good run, I think some of the banks helped out there, the Dow was up almost 95 points which is .4 per cent but tech stocks were virtually flat.’
Along with some continuing weakness in the iron ore price on Friday after the Australian market closed, its made for a slow start to the week, he said.
‘What was a lot of action out there on Friday night it looks like a fairly soft open tomorrow,’ Dr Oliver said.
Continued speculation of a Trump trade war is keeping investors anxious, but the market seems to be factoring in the US president’s treatment of his allies to some degree.
Locally, the Reserve Bank minutes will be released this week and is likely to reinforce the bank’s optimism for growth, Dr Oliver said.
The June job figures will also be released, with another solid rise predicted but unemployment to continue staying about 5.4 per cent.
‘So really all we are doing at the moment is generating enough jobs to cover the new entrants into the workforce from higher levels of immigration and population growth,’ Dr Oliver said.