US tech lift to boost markets
A STRONG start is tipped for the Australian sharemarket after Wall Street closed with record highs after a surge in the technology sector.
The S&P 500 information technology sector in the US rose 0.3 per cent, powered by an Nvidia-led surge in chipmakers, while Apple rose 1 per cent in its first gain since unveiling the new iPhones.
Investors will look to the Reserve Bank this week when it publishes minutes tomorrow from its September board meeting and there will also be speeches from governor Philip Lowe and assistant governor Luci Ellis later in the week.
AMP Capital’s chief economist Shane Oliver expects the central bank to show a degree of comfort in how the economy is evolving, while expressing concern with the rise of the Australian dollar.
“The RBA indicated last month that a higher Australian dollar will threaten growth and inflation,” Dr Oliver said. “I think rates will be on hold for sometime yet.” The dollar closed at US79.9¢ on Friday.