Australia’s share market is expected to open down before optimism returns to the market to usher in the New Year.
The futures market is due to open 10 to 15 points down on Monday, AMP Capital’s chief economist Shane Oliver told AAP on Sunday.
“Even though it might open a little bit soft tomorrow, I suspect that through the week as a whole we will rally, helped along with New Year optimism and the lack of new issuance,” Mr Oliver said.
The benchmark S&P/ASX200 index closed 27.5 points, or 0.4 per cent, higher at 6,821.7 points on Friday – the best session in seven – while the broader All Ordinaries was up 29.9 points, or 0.43 per cent, at 6,936.3 points.
Yet Wall Street closed flat on Friday, with the S&P 500 up fractionally 0.1 point.
“Given the week lead-in from the futures contract and the flat close on Wall Street, as measured by the S&P 500, we’ll probably open a little down tomorrow,” Mr Oliver said.
But there’s still hope for a buoyant market this week.
“There is a bit of optimism around about the outlook for 2020 after relatively slow economic growth … in 2019,” Mr Oliver said, after slight rises in the past two weeks.
The market closes on Wednesday for New Year’s Day before CoreLogic home price data for December is released in Australia on Thursday with a growth in the market expected.
Various international manufacturing data is also expected to be released this week.