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Aussie share market tipped to open higher

The Australian share market is likely to open higher on Monday to reflect small gains on Wall St and global markets at the end of last week.

The Reserve Bank headquarters in Sydney.
The markets will be watching what the RBA has to say in its monthly minutes this week. (AAP)

A reasonably good opening is expected on the local markets on Monday after Wall St had small gains to close the week.

"It should be a positive start, I suspect it will open up," AMP Capital's chief economist Shane Oliver told AAP.

Locally, investors will be awaiting the release of the minutes of the most recent meeting a fortnight ago of the Reserve Bank of Australia on Tuesday.

Dr Oliver said it's likely the minutes will reflect a desire to keep interest rates remaining on hold for the foreseeable future.

September jobs figures will come out on Thursday, with a general consensus that around 15,000 jobs were created for the month.

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There has been a steady rise in job creation for the past year, so Dr Oliver warns sooner or later there will be a negative gain in jobs.

Internationally, the big signpost should be the Chinese National People's Congress, which begins on Wednesday.

"I don't expect any huge surprises from the Congress," Dr Oliver said.

Ultimately the Congress will decide on a five-year plan for Chinese leadership and policies, but with inflation figures coming out on Monday likely to show steady growth Dr Oliver doesn't expect any big changes to economic policies.

The Australian share market closed at its highest level since June last week.

The benchmark S&P/ASX200 index ended up by 19.7 points, 0.34 per cent, to 5,814.2 points on Friday, with nearly all sectors making gains and capping a solid week to leave the market up 1.8 per cent for the five-day period.

The Aussie dollar was trading at 78.34 US cents.

Wall St also closed higher after upbeat economic data and gains in technology shares.

The Dow Jones index and the S&P 500 had a fifth straight week of gains.


2 min read

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Source: AAP



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