The Australian share market is poised to rise at the open, shaking off mixed leads from Wall Street.
It comes as the ASX futures is tipping a gain of over 20 points, after the Dow Jones closed at a record high on Friday. The oil price also posted its best weekly gain this year, jumping over 8 per cent.
As for the other two US major indices, the S&P 500 and the Nasdaq they both posted slight declines.
The market was dragged lower after Amazon shares initially fell 4.3 per cent, after it reported weaker than-expected quarterly results. But the stock managed to claw back some losses and it closed 2.5 per cent lower.
Meantime consumer staples led the broader S&P decliners. Energy, Healthcare and financials however traded higher.
US economic news
US second quarter growth, Gross Domestic Product (GPD) has rebounded, rising at a 2.6 per cent annual pace, just shy of the 2.7 per cent expected.The climb follows first quarter GPD of 1.2 per cent revised growth. The resurgence comes as consumer spending, which is the biggest part of the economy, rose 2.8 per cent, following the prior quarter’s 1.9 per cent gain.
Local economic news
Kicking off the week, the Reserve Bank of Australia (RBA) will release its financial aggregates publication for June, which includes private sector lending data and money supply.
On Tuesday, the RBA will hold their all important Bank Board meeting, with interest rates widely expected to remain on hold at 1.5 per cent.
On the same day, we will learn of the CoreLogic Home Value Index for July, with some expecting rise of 1.6 per cent.
The next day on Wednesday, the ABS will reveal the building approvals for June. It’s a leading indicator of construction/home building for the industry.
On Thursday the ABS will report the international trade date for June, with figures on exports and imports. Some analysts are expecting the broader current account surplus in the June quarter to hit a record, for the first time in 40 years.
And closing out the week on Friday, the RBA will release its statement on monetary policy. It will include the RBA’s latest economic assessment, as well as inflation and economic growth forecasts that typically pave the way for where interest rates are headed.
And the ABS will also unveil the retail trade for June and June quarter
Wall Street closed mixed on Friday: The Dow Jones Industrial Average gained 0.2 per cent to close at 21,830, the S&P 500 fell 0.1 per cent to close at 2,472 and the NASDAQ slipped 0.1 per cent to close at 6,375.
European markets closed lower: London’s FTSE fell 1 per cent, Paris lost 1.1 per cent and Frankfurt slipped 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added fell 0.6 per cent, Hong Kong’s Hang Seng fell 0.6 per cent, and China’s Shanghai Composite rose 0.1 per cent.
And back home, the Australian share market closed in the red on Friday: At the closing bell, The S&P/ASX 200 Index closed 82 points lower or 1.4 per cent to close, at 5,703.
On the futures market the SPI is 24 points up.
TechnologyOne (ASX:TNE) has announced that as Brisbane City Council (BCC) wrongfully terminated its contract, it will pursue the matter in court. The enterprise software company says ratepayers are now exposed to a $50 million plus damages claim, for wrongful termination by Brisbane City Council (BCC). The company says, Brisbane City Council’s behaviour was ‘disingenuous’ and ‘unprofessional’ and the council was trying to engineer a termination of the contract for breach. Despite that, TechnologyOne says, at all times it was ready, willing and able to complete the contract. And as it’s the leading supplier to over 300 Australian councils, it offered BCC a compelling value proposition. The software firm is remaining confident of its legal position. Shares in TechnologyOne (ASX:TNE) last traded 2.69 per cent lower on Friday to $5.42.
One Australian Dollar at 7:30AM was buying 79.89 US cents, 60.85 Pence Sterling, 88.42 Yen and 67.99 Euro cents.
Gold has gained $8.80 to $US1,275 an ounce.
Silver has added $0.12 to $US16.70 an ounce.
And Oil has advanced $0.67 to $US49.71 a barrel.