The market will be off to a good start on the Queens’ Birthday with the ASX Futures up 0.2 per cent after global markets rebounded from the geopolitical dramas.
In Australia, the share market had its first weekly gain in four weeks with the S&P/ASX 200 closing 54.8 points or 0.9 per cent higher on Friday, finishing the week at 6045.2.
In Europe stocks were in the red at the end of the week ahead of the tense G7 summit, which turned into a G6 versus G1 with G7 leaders confronting Donald Trump on imports to sway his thinking while the US president presented his own numbers and held to his position that the US was at a disadvantage on trade.
Mr Trump ended up retracting his endorsement of the joint statement which saw the major industrial nations – Canada, the US, the UK, France, Italy, Japan and Germany – agreeing on the need for “free, fair, and mutually beneficial trade” and the importance of fighting protectionism.”
On Friday, FTSE 100 closed the session down 23.33 points or 0.3 per cent at 7,681.07, Germany’s Dax was down 0.35 per cent and the Cac 40 in France was flat.
On Wall Street, the major averages all rose at least 1.2 percent for the week but the rise was kept in check amid the increasing tensions between the US and its trading partners.
Overseas, the markets will be focused on the US-North Korean summit on Tuesday, the US announcing a final list of $US50 billion of Chinese imports to be covered by a 25 per cent tariff and meetings next week of the US Federal Reserve, the European Central Bank and the Bank of Japan
Australian investors will be watching out for the NAB business survey and housing finance figures from the Australian Bureau of Statistics, both on Tuesday.
Consumer confidence figures on Wednesday will be important as will Thursday’s employment figures from the Australian Bureau of Statistics.
Investors will also be monitoring speeches from Reserve Bank of Australia governor Philip Lowe on Wednesday and assistant governor Luci Ellis on Friday for any clues on interest rates.
11th June 2018