The Australian market is in for positive start with the ASX Futures up 0.4 per cent following the S&P/ASX 200 index firming 60.8 points, or 1 per cent higher on Friday to close at 6339.2. The market closed on a 10 year high after a week of solid profits and another solid day of trading will put it on another ten year high.
This followed last week’s messy performance of global markets which fell on angst about Turkey and then rebounded to varying degrees on news of new US/China trade talks.
European stocks closed lower led by Italian shares with concerns over the country’s banks with the Stoxx Europe 600 down 0.1 per cent to 381.07, Italy’s FTSE MIB Index falling 0.6 per cent to 20,400.51, Germany’s DAX losing 0.2 per cent to end at 12,210.55 and France’s CAC slipping less than 0.1 per cent at 5344.93, down 1.3 per cent on the week. The UK’s FTSE 100 edged up by less than 0.1 per cent, closing at 7558.59. The FTSE fell 1.4 per cent over the week, in a run that included its biggest decline since February.
On Wall Street, the Dow Jones Industrial Average rose 110.59 points to 25,669.32 after a Wall Street Journal report that US. and Chinese officials are working on a road map for a meeting. This saw the S&P 500 rising 0.3 per cent to 2850.13, while the Nasdaq Composite erased its previous losses to close 0.1 per cent higher at 7816.33.
During the week, 70 major companies will be reporting their profits. The list includes Woolworths, Beach Petroleum, Ansell, Nufarm, Goodman, Healthscope, Fortescue, Primary Health Care, Amcor, Oil Search, Carsales, Newscrest, Flight Centre, Seven Group, Worley Parsons, Coca-Cola Amatil, South32, Nine Entertainment, Medibank Private, Brambles and Stockland.
Investors will also be reading minutes of the last Reserve Bank of Australia board meeting on Tuesday, to draw insights into economic factors like the housing market, unemployment and inflation.
On Wednesday, the Australian Bureau of Statistics will release the June quarter construction data.
Also during the week, there will be speeches from the RBA with the Governor speaking at ASIC’s National Financial Capability Strategy in Canberra on Tuesday, the Deputy Governor at an Economic Society lunch in Brisbane on Wednesday and the Assistant Governor (Business Services) at the Business Banking Summit in Sydney on Thursday.