The Australian share market is tipped to open lower this week after US and European markets weakened on Friday.
The Dow Jones Industrial Average was down 1.2 per cent and the European market fell 0.9 per cent on Friday, with the Canadian share market also dipping by 0.2 per cent.
These falls are setting the Australian share market up for a weaker start on Monday with the futures contract indicating a 0.3 per cent dip, CommSec chief economist Craig James told AAP on Sunday.
The market dips aren’t a reflection of a weak economy, but rather uncertainty whether the US market will continue to do as well as it has in the past two months, he said.
‘What we are seeing across the globe from late August into September, the US markets were at or near record highs and pretty much price for perfection,’ Mr James said.
‘People are uncertain about the outlook and are not wanting to take out stocks anymore.’
The US and China trade dispute also continues to cause concern, he added.
Australia’s energy and mining sectors should get a boost with oil and gold prices rising.
‘The fact all those prices rose will provide support for a number of our mining and energy sectors,’ Mr James said.
The Australian dollar is in position to start stronger on Monday after finishing firmer on Friday, rising from 70.3 to 70.9 US cents.
This week will see the release of key data including the consumer price index on Wednesday, export and import data on Thursday and producer prices on Friday.
The latest house prices and retail spending data will also be released, as well as CommSec’s state of state reports on Monday.
Global markets will be looking to the US on Friday when its latest employment figures are due to be released.