The market is in for a solid start with the ASX Futures up 0.4 per cent following last week’s developments which saw share markets around the world fall on the back of geopolitical concerns around trade.
Nonetheless, Australia’s share market held up well with rising oil prices boosting energy stocks. The Australian market has outperformed its global peers, with the ASX 200 index up 6.5 per cent over the last 12 months.
On Friday, the S&P/ASX 200 closed 20.8 points, or 0.3 per cent, lower at 6194.6 but it ended the quarter up 435.2 points, or 7.6 per cent higher, reaching a ten-year high on June 22.
In Europe, equities closed higher on Friday after EU leaders came to a deal on migration, offsetting the market’s unease about global trade frictions.
The UK’s FTSE 100 was up 0.28 percent, while France’s CAC40 and Germany’s DAX gained 0.91 and 1.06 percent respectively.
The S&P 500 on Wall Street gained 0.1 percent and closed at 2718.37 and the Nasdaq composite added 0.1 percent to 7510.30.
The market is expecting more volatility in the weeks and months ahead of the mid-term elections in November.
“To get a big selloff from here, you’re going to need negative developments. The new negative developments could be tariffs on European autos or tariffs on U.S. tech. They could be Chinese currency issues resurfacing,” Michael Hartnett, Bank of America Merryl Lynch chief investment strategist, told CNBC.
Australian investors will be keeping an eye out on the RBA board meeting on Tuesday. The RBA is expected to keep rates on hold for the 23rd month in a row.
On the data front, there will be CoreLogic numbers on home prices on Monday.
The Australian Industry Group manufacturing data will be also be released on Monday as will figures from the ANZ job ads series.
On Wednesday, the Australian Bureau of Statistics will be releasing figures for Australia’s trade balance and retail sales.
Monday 2nd July 2018