The Australian market is expected to open higher this week after global markets surged following the US Fed's announcement of support for the US economy and gains in commodity prices.
On the ASX 24, the September share price index futures contract was 20 points higher to 4412. The Aussie dollar was lower. It was recently buying $US1.0546, down from $US1.0626 early on Saturday morning.
Making new today
In economics news:
- Australian Bureau of Statistics (ABS) new motor vehicle sales for August
In company news:
- LinQ Resources Fund unitholders meeting
- Transpacific chief executive Kevin Campbell to address American Chamber of Commerce lunch.
- BlueScope, Automotive Holdings Group, Whitehaven record date
- CSL, Webjet ex dividend date
Making news this week:
- Tuesday: RBA board minutes for September monetary policy meeting
- Wednesday: Westpac leading index, David Jones full-year result - expected to report a profit slump of as much as 40 per cent
- Friday: Conference Board leading index for July
Making news in the US this week:
- Tuesday: Housing market index for Sept 2012,
- Wednesday: Housing starts for August, existing home sales for August
- Thursday: Jobless claims for the week of September 8, PMI Manufacturing index for September, leading indicators for August
Commonwealth Securities chief analyst Craig James said it would be disappointing if the Australian market opened only 20 points higher given its strong overseas leads and he predicted gains of around 30 to 40 points.
"I think the futures expectations is underestimating the gains that we may see," he said.
"The economic data in the US was more mixed than anything but generally its been pretty encouraging. Commodity prices have been higher and there's not much to focus on this week.
"A lot of the key economic data domestically has already come out and overseas there's not too many key events that we're waiting for."
He said the big drivers on the Australian market, Rio Tinto and BHP Billiton, had also posted gains of 6.6 per cent and six per cent respectively on the London market on Friday.
How we fared last week
Australian shares rose to their highest close in more than four months, led by miners, as investors cheered another round of monetary stimulus by the US Federal Reserve.
For the week, the S&P/ASX200 rallied 64.2 points, up 1.5 per cent, to finish at 4390, while the broader All Ordinaries added 61.5 points or 1.4 per cent, at 4410.2.
On the day, the ASX200 added 50.6 points, or 1.2 per cent, while the All Ords gained 50.4 points, also 1.2 per cent.
BusinessDay with agencies