Citizenship uncertainty

THE citizenship saga engulfing the federal parliament may drag the local share market lower at today’s open, despite a flat lead from Wall Street.

The US market was barely changed on Friday, with the S&P 500 closing 0.1 per cent down, suggesting a flat start to Australian trade this week.

However, AMP Capital chief economist Shane Oliver says citizenship developments on the weekend – such as the resignation of Liberal MP John Alexander due to dual-citizenship – may mean local shares fall slightly instead.

“You can’t rule out a bit more of a fall because of the increase in political uncertainties in Canberra,” he said.

“We’re now getting close to the point where the government might lose its majority.”