The Australian market will open lower in the US market



[ad_1]

Australian investors will see how confident local businesses and consumers are this week after two interest rate cuts and the coalition's victory in tax cuts.

They should also see the Australian stock market open 10 points lower on Monday, which will mark a smooth start to the week, following declines in the US and Europe after the closure of the local market Friday.

The US S & P 500 lost 0.2%, despite good news regarding better than expected nonfarm payrolls, said Sunday the AMP Capital chief economist, Shane Oliver.

"The market took this as a sign that the US central bank would not lower interest rates as much as it had hoped," said Dr. Oliver.

The US Federal Reserve had hoped for a 0.5% cut later this month.

In Australia, the S & P / ASX200 benchmark ended Friday up 33.3 points, or 0.5%, to 6751.3. All of the Ordinary closed up by 30.9 points, or 0.45%, to 6,831.8.

Australian stocks closed up two percent for the week, but should follow declines overseas on Monday.

"I was expecting a drop of about ten points, in line with the futures, which were down 12," said Dr. Oliver.

The AUD fell slightly against the US dollar because of its rise in the face of strong job growth in the United States.

On Friday, at the ASX index, consumer stocks held up well, with the coalition adopting tax cuts of $ 158 million, offering cash rebates of up to $ 1,000 to some Australians this year. .

Investors will closely monitor the post-election economic situation in Australia this week.

The NAB survey on business confidence for the month of June is to be released on Tuesday and that of consumers for the Wednesday of July.

Australian job offers, construction activity, loans and tourism data must also be published.

The market is also looking forward to the latest US and Chinese inflation readings later in the coming week, as well as the testimony before the US Congress from US Federal Reserve Chairman Jerome Powell.

[ad_2]
Source link