Subscribe to CIO Magazine »

Aust shares expected to rise on Monday

The Australian sharemarket is expected to gain around 0.3 per cent on Monday morning as investors look to earnings results after a flat finish in the US.

The Australian sharemarket is expected to open in positive territory on Monday as investors focus on the busiest week in profit season following a flat lead from Wall Street.

The Australian futures market is pointing to a 13-point, or 0.3 per cent, increase in local shares despite the S&P 500 closing 0.1 per cent lower on Friday.

AMP Capital chief economist Shane Oliver says local earnings results will continue to be the main driver of the Australian sharemarket this week.

"The Australian sharemarket is likely to ignore that US lead and that's largely because the market fell on Friday," Oliver said on Sunday.

A sharp drop in shares of the world's largest retailer Walmart pulled US stocks lower on Friday, though steep losses were averted by a final-hour rebound.

At the closing bell the broad-based S&P 500 was down 1.59 points (0.10 per cent) to 1,519.79. The Dow Jones Industrial Average added 8.37 points (0.06 per cent) at 13,981.76, while the tech-rich Nasdaq Composite slid 6.63 points (0.21 per cent) to 3,192.03.

But Oliver said local stocks would take centre stage in Australia this week as around 90 major companies issued their profit reports.

"Our market will take its lead from earnings reports," he said. "So far so good for earnings results."

Oliver expects major Australian companies to continue to deliver positive surprises.

On Tuesday the Reserve Bank of Australia (RBA) will release the minutes of its February board meeting which are expected to show a continual interest rate-easing bias.

On Friday RBA Governor Glenn Stevens will appear before a parliamentary committee. And on Wednesday, the latest official wages figures are expected to show fairly benign wages growth.

Australian shares closed flat on Friday, with the benchmark index holding above 5,000 points. The benchmark S&P/ASX200 index closed down three points, or 0.06 per cent, at 5,033.9 points, while the broader All Ordinaries index fell 2.6 points, or 0.05 per cent, to 5,054.6 points.

Follow CFO World Australia on Twitter: @CFOworld_AU, or take part in the CFO World conversation on LinkedIn: CFO World.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: AMP, Dow Jones, RBA, Reserve Bank of Australia, Wall Street
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: S&P Indices, Australian futures market, AMP Capital, Australian stock market (ASX)
Latest Blog Posts
  • Know What Customers Want Before They Do
    Webcast Summary: Today’s consumers and B2B companies only want interactions that are relevant, personalized, and based on a customer’s situation and preferences. Companies that fail to provide relevant offers will be left behind.
    Learn more »
  • Top 8 Considerations to Enable and Simplify Mobility
    IT departments have a huge opportunity to make their enterprises more agile, cost efficient and competitive by embracing the opportunities available through mobile devices and connectivity. Embracing mobility doesn't have to be complicated or costly - this report tells you how.
    Learn more »
  • Delphix and Pure Storage Team to Super-Charge Database Deployments
    This webcast presentation, prepared by Delphix and Pure storage, explores super-charge database deployments and how they can aid business strategy. The presentation details the main features of a new flash solution – high performance, inline data reduction, resilience and scalability, and the value of simplicity. Viewers can learn how to put an end to inefficient or delayed QA, Sharing DB environments, using DB subsets and slow environment builds.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Latest Jobs
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments