Reports from Wall Street are suggesting that a rally on the international market could be set to buoy Australian shares. Economists are tipping the shares to open in the positive ahead of Christmas. With an opening of around 10-15 points, the futures market looks positive for those with Aussie shares.
Economists Tip a Futures Market Opening to Start Christmas Week
Shane Oliver, Capital’s chief economist, reported on Sunday that he expects the futures market to open up at around 10-15 points today. He also mentioned that the rally is likely to follow that of the US and Europe which will be at around 0.2-0.3%.
His claim for a positive start to this week is based off the lead-in from Wall Street and Europe which he described as positive. This will be welcome news to those invested in Australian stocks as last week saw them end on a softer note with the benchmark S&P/ASX200 index finished up trading on Friday at 16.8 points or 0.25% lower at 6,816.3 points, with the broader All Ordinaries slipping 16.5 points or 0.24% to 6,926.1 points.
Strong Week Ahead as AUD Stocks Look to Build from Futures Market and US-China Deal
Mr Oliver stated that the most likely scenario is that a modest gain is observed going into this week. Despite the fall in the Aussie market at the end of last week, the US market rallied as did the European market.
He also noted that the ‘phase one’ agreement between the US and China was a positive occurrence for the China-sensitive AUD which should filter in positivity into the market. Investors have become frustrated recently as details from the deal have yet to surface, leaving investors in the dark about what has been agreed upon.
However, the market is hoping that details will be released in the upcoming week, should this be the case then the AUD will be set to benefit as China receives a boost to their economy.
With there being two public holidays in this week as the festive period arrives, it is likely to be a quiet week on the trading front. But economists are suggesting that a “Santa Clause” rally in the market will hopefully give a final boost to the economy as the year draws to a close and wraps up on New Year’s Day.
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