Oil prices, US holiday contribute to quiet share week start
THE Australian share market is expected to open weaker today with a fall in the price of oil and other resources.
The benchmark S&P/ASX200 was down 0.07 per cent on Friday, to 6032.8 points, while the broader All Ordinaries index fell 0.05 per cent, to 6140.9 points.
CommSec chief economist Craig James said the price of oil and other resources such as gold and iron ore have fallen due to the strengthening of the US dollar which will result in a weaker opening.
“We did see the oil price fall sharply,” he said.
“The oil price falling creates a weakness for the energy sector and Australia is a major producer of energy.”
Mr James said changes to the oil prices are expected in coming months as Saudi Arabia is engaged in discussions with Russia about how to balance the market with the potential to ease supply limits.
OPEC oil producers and Russia are due to meet in Vienna on June 22 to discuss the possibility of releasing supply this year.
Mr James said he expects it to be an interesting week to watch with house price data released for Australia on Friday and employment figures for the US on the same day.
The share market closed flat on Friday with little movement due to a lack of local and international economic events leaving traders directionless.
US and European markets fell after President Donald Trump cancelled his planned meeting with North Korean leader Kim Jong-Un. Mr James said traders would be watching to see if there is still the potential for a meeting between Trump and the North Korean leader and how the US and China trade dispute develops.
The US has a public holiday on Monday for Memorial Day with the stock market closed.