The market is in for a solid start for the month with the ASX Futures up 0.4 per cent as US shares this week struck new records.
However, any gains were capped by concerns about emerging markets in Turkey and Argentina with the currency there collapsing and the central bank lifting rates to 60 per cent. There was also anxiety about the US tariffs on China and the failure of the US and Canada to reach a deal on a trade agreement.
In Australia, the S&P/ASX 200 Index fell 0.5 per cent to close on Friday at 6319.5 as mining stocks tumbled
Hong Kong’s Hang Seng was down 0.9 per cent and Japan’s Nikkei 225 Index was relatively flat.
European stocks fell on trade anxieties with Germany’s DAX down 1 per cent to 12,364.06, finishing the month3.5 per cent lower. The FTSE 100 in the UK fell 1.1 per cent to 7432 and France’s CAC 40 Index was down 1.3 per cent to 5406.85, losing 0.5 per cent for the week and 1.9 per cent for August.
Trade talks weighed on US stocks with the S&P 500 Index flat at the close in New York on Friday. The Nasdaq Composite Index added just 0.3 per cent and the Dow Jones Industrial average slipped 0.1 per cent.
Investors will be keeping an eye on the Reserve Bank of Australia board meeting on Tuesday. While the RBA is not expected to lift interest rates, there will be interest in the RBA’s observations on consumer spending, the housing cycle and inflation.
On the data front, investors will watching out for the numbers on retail sales from the Australian Bureau of Statistics on Monday, June quarter GDP data on Wednesday and balance of trade figures on Thursday.
Monday will also see the release of CoreLogic numbers on house prices.