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Sunday 22

July, 2018 3:13 PM



Australian market expected to open higher

Australian market expected to open higher

Gains in the US and European markets are expected to push the ASX higher when trade resumes on Monday.

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By AAP 08.07.2018 10:05 AM

The Australian share market is tipped to start the week in the green, buoyed by gains in the US and European markets.

The benchmark S&P/ASX200 is expected to rise by between 25 and 30 points when trade resumes on Monday, in line with Australian futures.

The gains come after investors on Wall Street and in Europe appeared relieved that tit-for-tat tariffs between the US and China played out as predicted on Friday.

Washington and Beijing slapped tariffs on $US34 billion ($A46 billion) worth of each others' imports.

"There was a bit of a relief rally, that they finally happened," AMP Capital's chief economist Shane Oliver told AAP on Sunday.

"There's hope now that there will be some kind of negotiated solution."

Strong jobs growth data in the US also bolstered Wall Street on Friday, with the S&P 500 and the Nasdaq hitting their highest levels in two weeks.

The S&P 500 gained 23.21 points, or 0.85 per cent, to 2,759.82 and the Nasdaq Composite added 101.96 points, or 1.34 per cent, to 7,688.39, after non-farm payrolls increased by 213,000 jobs.

"The market interpreted that as another Goldilocks jobs report, not too strong, and not too cold," Dr Oliver said.

In the week ahead, Australian investors will be keeping an eye on confidence data, with the June NAB survey to be released on Tuesday predicted to show continuing strength in business conditions.

A Westpac/MI consumer survey for July, out on Wednesday, will likely show consumer conditions running around average levels, Dr Oliver said.

Housing data for May, also out on Wednesday, is tipped to remain soft, with another fall.

The Australian share market closed higher on Friday, with the benchmark S&P/ASX200 climbing 56.8 points, or 0.91 per cent, to 6,272.3 points - its highest level since December 2007.

The local currency was trading at 74.09 US cents.

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