Aussie sharemarket likely to open strong

The Australian sharemarket is likely to open up on Monday in line with gains made on Wall Street and Europe at the end of last week.

A solid opening is expected on the local markets on Monday to reflect strong gains in the US market on Friday after Apple shares soared.

"It should be quite a solid opening, Wall Street rallied on Friday with tech stocks, in particular Apple," AMP Capital's chief economist Shane Oliver told AAP.

"The broader market was also pretty strong, there were fairly good gains in general."

Dr Oliver said US jobs growth had accelerated in October after hurricane-related disruptions in September, while unemployment fell.

The S&P 500 and Dow industrials recorded their eighth consecutive week of gains, while the Nasdaq posted its sixth straight positive week, as equities climbed to record highs.

Europe markets were also slightly up to end the week.

Locally, investors will be keenly observing the Reserve Bank of Australia's (RBA) meeting on Tuesday, with interest rates tipped to remain at 1.5 per cent for the fifteenth straight month, according to Dr Oliver.

Uncertainty over consumer spending in Australia, coupled with inflation staying below target means rates are unlikely to go up until late 2018, Dr Oliver says.

On Thursday the Australian Bureau of Statistics releases data on home lending, with the data expected to show a rise in the number of home loans by around two per cent.

The RBA releases its quarterly statement on monetary policy on Friday, with few changes expected.

Local markets closed at its highest level since April, 2015, on Friday with broad gains led by mining, energy and industrial stocks.

The benchmark S&P/ASX200 index finished Friday up 0.48 per cent at 5,959.9 points with consumer staples the only weak point on a day when retail trade figures showed a disappointingly flat effort by consumers during September.

The S&P/ASX200 gained nearly one per cent for the week, with the broader All Ords making a similar gain for the period and passing 6,000 points on Wednesday for the first time since the global financial crisis.

The Aussie dollar was trading at 76.86 US cents on Friday.

Dr Oliver said the RBA would prefer this to be down at around 70 US cents.


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Source: AAP



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