The market is in for a positive start this week with the ASX future up 0.6 per cent following last week’s mixed performance when share markets were rocked by geopolitical events, first with the turmoil in Italy and then US trade announcements.
‘The market this week will be concerned about a potential trade war with US president Donald Trump announcing the formalisation of tariffs and investment restrictions on China and that his administration will end US exemptions for the EU, Mexico and Canada to the steel and aluminium tariffs announced earlier this year.
And for Australian investors it will be a week of important data telling them which direction the economy is heading in.
In Australia, the S&P/ASX 200 index closed on Friday at 5990.4, down 42.4 points, or 0.7 per cent for the week.
On Wall Street, the S&P 500 Index rose for the second week in a row after the unemployment rate fell to 3.8 percent in May. This was the lowest number in nearly half a century.
Italian and Spanish stocks soared on Friday as both countries ushered in new governments after a week when Italian political uncertainty rattled global markets. That saw European equities rise with Italy’s FTSE MIB index surging 2.8 per cent, the FTSE 100 jumping 54 points, or 0.7 per cent, to 7,733 while Germany’s DAX 30 added 0.6 per cent and France’s CAC 40 rose 1 per cent.
On Tuesday, Australian investors will be monitoring the proceedings of the meeting of the Reserve Bank of Australia Board. While the board is expected to keep rates on hold, investors will be keen to learn the RBA’s attitude given recent figures showing a softening in the housing market.
On the same day, the Australian Bureau of Statistics will be releasing Australia’s current account figures indicating the performance of the export market.
The main attention will be on Wednesday’s ABS figures pointing to growth levels of Australia’s gross domestic product.
Another interesting set of figures will be the state of Australia’s retail trade on Monday.