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The Australian stock market is expected to open flat after outperforming the United States last week and economists are now watching the Reserve Bank of Australia for a lower interest rate "sooner than later".
The futures contract, one of the best predictors of market opening, slipped two points, less than 0.1% at closing, after MPA chief economist Shane Oliver called it a "very good week".
"We have grown about 1.8% over the United States during the week," he told APA on Sunday.
A drop in oil prices on Friday night will likely lead to a decline in Australian gas producers and energy stocks, Dr Oliver said.
A drop in the price of iron ore will also be a hand brake Monday.
Economists will pay attention to the RBA's credit data on Tuesday, which is expected to post modest growth limited by housing.
CoreLogic will release housing price data for the month of April, announced Dr Oliver, which is expected to show a 0.5% drop in prices throughout the month.
The Australian Bureau of Statistics is expected to release building approval data on Friday.
"There was a rebound in February for apartment approvals, but they are pretty volatile, so we're expecting a big pullback," said Dr. Oliver.
He expects a 12% drop from February.
New data from the United States, including inflation, payroll and employment, as well as business surveys of the manufacturing sector and the economy in general, will likely reveal a new market. solid.
China is also expected to publish similar indices claiming positive growth.
The Australian dollar rose slightly on Friday to 70.25c US, but it is still down during the week.
According to Dr. Oliver, the RBA should lower interest rates as early as next week.
"A good number of economists are considering this reduction after the fall in inflation figures for Australia last Wednesday," he said.
"If they do not cut, they will do it in June." Some say they may be waiting after the elections, but there are good reasons to cut them as soon as possible. "
Dr. Oliver said that the federal elections had given only few surprises so far, with policy announcements having no impact on the market.
Australian Associated Press
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