The Australian stock market is expected to open slightly higher on Monday despite a mixed performance in United States markets on Friday.
On Wall Street on Friday, the Dow Jones Industrial Average lost 43.25 points, or 0.34 per cent, at 12,681.2 points as earnings reports from General Electric and McDonald’s surpassed expectations but US industrial bellwether Caterpillar fell short.
The broader S&P 500 index lifted 1.22 points, or 0.09 per cent, at 1,345.02 points, and the tech-heavy Nasdaq Composite index rose 24.4 points, or 0.86 per cent, to 2,858.83 ponts.
CommSec chief economist Craig James said the benchmark US index, the Dow Jones, was dragged back by the Caterpillar result and otherwise may have finished higher.
“But, overall, I think it’s going to be a cautious start (on the Australian market),” Mr James said.
“There’s still a degree of uncertainty about the US debt ceiling and negotiations through there.
“The futures market is pointing towards something like a three-point gain (on the Australian market).”
US political leaders have been negotiating on raising the country’s debt ceiling before an August 2 deadline so that it can pay its bills and continue operating.
Mr James said the Australian market had made some good gains at the end of last week after Greece was bailed out of its debt crisis.
“The next hurdle is the US debt ceiling. Once we get some resolution there, we’ll have some clear air,” he said.
On the company front this week, retailer Harvey Norman releases its second quarter sales results on Monday, Alesco releases its full year results on Tuesday, Australand Property releases its first half results on Wednesday, Macquarie Group holds its annual general meeting on Thursday, and Austar United Communications released its first half results on Friday.
On the economic front this week, Reserve Bank of Australia governor Glenn Stevens addresses The Anika Foundation on Tuesday, and the Australian Bureau of Statistics releases consumer price index data for the June quarter on Wednesday.
On the Australian market on Friday, the benchmark S&P/ASX200 index gained 46.9 points, or 1.03 per cent, to 4,602.9 points while the broader All Ordinaries index rose 47.9 points, or 1.03 per cent, to 4,674.1 points.
AAP
