Markets expected to start higher but volatility remains

THE Australian share market is expected to start the trading week higher after an encouraging end to the latest session on Wall Street.

But the market is likely to be volatile in the week ahead as uncertainty remains around a number of global issues, including the United Kingdom’s Brexit deal.

The futures market suggests the benchmark S&P/ ASX200 will rise by about 0.3 per cent, or 17 points, when Australian trade resumes today. That comes after US stocks finished mostly higher on Friday after an erratic day of trading ended with an 11thhour buying spree.

The S&P 500 index rose 6.07 points, or 0.2 per cent, to 2736.27, while the Dow Jones Industrial Average gained 123.95 points, or 0.5 per cent, to 25,413.22.

CommSec chief economist Craig James said the positive end to the week on Wall Street and rises in commodity prices bode well for the local market today. “There’s a lot holding in our favour,” he said.

Where things go from there remains less less clear, as several uncertainties remain, Mr James said.

They include the UK’s Brexit deal, as Prime Minister Theresa May defends her draft plan against fierce critics.

The Australian share market closed marginally lower on Friday with the S&P/ASX200 down 5.4 points to 5,730.6. The Australian dollar was buying 72.68 US cents on Friday.