Shares on the Australian market are tipped to fall early after global markets closed weaker last week on concerns about continuing growth in COVID-19 cases in the US.
The Australian SPI 200 futures contract was lower by 35.0 points, or 0.58 per cent, to 5999.0 points at 0800 AEST on Monday.
ASX investors are taking the lead of mixed results from European markets, with Wall Street closed on Friday on account of the US Independence Day. The Stoxx Europe 600 was down 0.8 per cent and the UK FTSE ended 1.3 per cent lower. Investors have become less optimistic about further gains as the United States has continued to report more than 50,000 COVID-19 cases daily for the past several days. There are also doubts about the pace of the recovery with some countries in Europe reimposing restrictions due to a resurgence in COVID-19 cases. Local investors are also likely to be concerned about the situation in Australia too. Nine housing commission blocks in Melbourne remain in lockdown amid rising infection numbers in Victoria. The Australian dollar was buying 69.30 US cents at 0800 AEST, lower from 69.36 US cents at the close of trade on Friday. Among key events being watched this week will be the Reserve Bank board will meet on Tuesday to set the official cash rate and consider any further response to the economic crisis from the coronavirus. The Australian dollar was buying 69.30 US cents at 0800 AEST, lower from 69.36 US cents at the close of trade on Friday.