Australian share prices are expected rally as the year comes to close although doubts over the US economy will linger, dealers said Friday. Coming after six weeks of losses, the past two weeks have seen a recovery in Australian stocks.
For the week ending December 7, the key S&P/ASX 200 index gained 121.6 points or 1.9 percent to 6,654.7. AMP Capital Investors chief economist Shane Oliver said share-markets were continuing to recover from the November slump; helped by better-than-expected data from the US and its government's assistance to subprime mortgage borrowers.
Oliver said shares were likely to provide reasonable returns over 2008. He said investors would continue to go through mood swings on the back of worries about slower profit growth on the one hand but euphoria at the prospect of lower interest rates on the other. CMC markets senior dealer Matt Lewis said the improved mood on the Australian market suggested confidence was growing.
Comments
Comments are closed.