The market in the week ahead

The market in the week ahead
The big focus for investors this week will be the latest figures on unemployment and the data around Australia’s housing boom. It will be a shortened four-day trading week ahead of the Easter break.

The market is expected to open flat on Monday, with the ASX Futures pointing to a mere 0.2 per cent rise after Wall Street’s S&P 500 Index slipped on Friday following the US military strike in Syria and worse-than-forecast jobs figures.

AMP Capital chief economist Shane Oliver says the US attack on Syria added some “uncertainty” but the market would take it in its stride.

“News that the US has launched a missile strike against Syria in response to a chemical attack on civilians does add a bit of short term uncertainty but we have seen such events in the past and the impact usually proves short lived,” Dr Oliver said.

“This is likely to be the case again, particularly as it’s unlikely to signal increased US involvement in the war in Syria.”

Investors will focus on the labour market figures on Thursday.

The market has priced in a bounce of 30,000 jobs and for the unemployment level to stay at 5.9 per cent.

The other important bits of data will be the housing finance and building approvals figures from the Australian Bureau of Statistics on Monday.

These are critical numbers following the Australian Prudential Regulation Authority’s decision to slow the growth of interest-only loans and loans with high loan to valuation ratios.

With the Reserve Bank of Australia also concerned about rising house prices, the RBA’s Financial Stability Review on Thursday with its commentary around housing will also be closely watched.

There will also be some focus this week on business conditions in the NAB survey and the data on consumer confidence.

 



Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.


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