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Quiet week on Aust market Trumped by US

A quiet week on the Australian share market means investors will focus overseas on a possible oil supply restriction and, once again, on Donald Trump's cabinet.

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Source: AAP


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A slow week ahead on the Australian share market will mean investor focus will be on US president-elect Donald Trump's cabinet and negotiations over a possible restriction of oil supplies.

The market is set for a flat start on Monday with the share price futures pointing to a rise of just seven points, as weakness in the US is offset by a higher oil price, CommSec chief economist Craig James told AAP.

The Australian share market finished higher on Friday with the benchmark S&P/ASX 200 index up 0.4 per cent, its third straight positive session, but over the week was 0.2 per cent lower.

"This week, I think, it's all about watching Donald Trump, yet again," Mr James said.

Attention will also be on the whether an agreement over restricting oil supplies can be reached before a meeting of oil producing nations on November 30.

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But Mr James said investors were taking confidence in the fact that the Australian share market had remained relatively unscathed in a year of political turbulence with the Australian election, Britain's decision to leave the EU and Donald Trump's US election victory.

"We've got through the biggies this year," he said.

"Investors are of the belief now that no matter what is thrown at them the markets have been relatively well behaved. They have managed to survive those shock results."

The stronger US dollar was a good sign for exporters as the Aussie continues to slide from its US election highs back to buying around 73.5 cents US.

"Around about the time of the US election it was creeping to almost 78 cents, so we've seen a fairly big reversal in a short period of time," Mr James said.

Although retail giant Woolworths, Primary Health Care and Australian Dairy Farmers Group are among those holding annual meetings this week, the season is winding down and investors will already be anticipating half year results.

"Once we move into the end of this month and into December, we'll start to be raising our expectations about what companies are likely to show in revenue and profit," Mr James said.


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