Australia’s share market is expected to open down before optimism returns to the market to usher in the New Year.
Australian share futures were pointing to a 22 point fall to 6,722 on open Monday morning.
“Even though it might open a little bit soft tomorrow, I suspect that through the week as a whole we will rally, helped along with New Year optimism and the lack of new issuance,” said AMP chief economist Shane Oliver, who is tipping the market might open between 10 points and 15 points lower, said.
The benchmark S&P/ASX200 index closed 27.5 points, or 0.4 per cent, higher at 6,821.7 points on Friday while the broader All Ordinaries was up 29.9 points, or 0.43 per cent, at 6,936.3 points.
Wall Street closed flat on Friday, with the S&P 500 up fractionally 0.1 point to 3,240.02, while the Dow Jones Industrial Average added 0.08 per cent to 28,645.26 to score another record closing high.
“Given the week lead-in from the futures contract and the flat close on Wall Street, as measured by the S&P 500, we’ll probably open a little down tomorrow,” Mr Oliver said.
But there’s still hope for a buoyant market this week.
“There is a bit of optimism around about the outlook for 2020 after relatively slow economic growth … in 2019,” Mr Oliver said, after slight rises in the past two weeks.
The market closes on Wednesday for New Year’s Day.
In a week light on for economic data, all eyes will be on CoreLogic house and unit price data for December which will be released on Thursday. Various international manufacturing data is also expected to be released this week.
Source: Thanks smh.com