Market tipped to open in the black

AUSTRALIA’S share market is set to open in the black after a double whack last week.

The futures market is pointing to a positive opening today of between 10 and 15 points, up 0.2 per cent, AMP Capital’s chief economist Shane Oliver said.

The benchmark S&P/ ASX200 index finished Friday up 36.9 points, or 0.55 per cent, to 6,709.8 points, while the broader All Ordinaries was up 38.8 points, or 0.57 per cent, to 6,816.5 points.

The ASX finished for the week down 83.9 points, or 1.24 per cent, but it’s still up 46 points for the month.

The Australian market took a beating last week due to the ongoing certainty over the USChina trade deal, and allegations against Westpac of 23 million breaches of money laundering laws. “You could argue that the domestic news was worse than the global news,” Dr Oliver said.

Eyes will remain on the USChina deal as to whether it can finally be ticked off before the US raises tariffs on about $221 billion worth of imports from China on December 15.

Back home, Reserve Bank governor Phillip Lowe will deliver a speech tomorrow night about unconventional monetary policy. It could signal just how close the RBA is to implementing such policy as interest rates edge closer towards zero, Dr Oliver said.

“It suggests they’re considering it fairly seriously … and what aspects of unconventional monetary policy they may do,” he said.

Construction data on Wednesday will also sharpen the market’s focus, in the runup to the September GDP quarter figures to be released the following week.