Weak opening tipped for Australian shares after global dip
AUSTRALIAN shares are set to drop almost 1 per cent to start the week after the US had its worst one-day drop since January 3.
The futures indices yesterday morning pointed to a de- cline of 50 points or 0.8 per cent on Monday morning for the ASX200, which closed last week 20 points ahead at 6195.20.
London’s FTSE, Germany’s DAX and the three US indices all dropped at least 1.5 per cent on Friday.
The tech-heavy Nasdaq Composite was the worst of the lot, falling 2.5 per cent to 7642 points, while the key Dow Jones Industrial Average dipped 1.8 per cent to 25,502.
“It would be difficult for us to disentangle ourselves too far from those declines,” CommSec chief economist James said yesterday.
But Mr James said except for weaker-than-expected European manufacturing and services, there wasn’t anything fundamental pushing markets down.
He said local shares would Craig be helped by higher gold and iron ore prices and an election result in NSW, where Gladys Berejiklian’s coalition government was returned for a third term. “There will be a sigh of relief for many in NSW that they can go about their business now,” he said.