Australian shares are seen taking their lead from key US jobs data in the coming week, with anything other than better than expected results likely to trigger a sell-off, dealers said. The benchmark S&P/ASX 200 slipped 54.1 points, or 1.21 percent over the week, to close at 4,435.5.
Anxiety over the imminent US non-farm payrolls data dragged on Friday's trade, as investors retreated to the sidelines ahead of the announcement, said CMC Markets trader James Foulsham.
"Next week's going to be completely determined by what happens tonight (Friday) with the non-farm payrolls, that's a pretty significant number," Foulsham told AFP. "At the moment everyone's been kind of gearing up for that." Foulsham said the market was expecting an increase of 240,000 in the number of people jobless, and anything better than that would support shares.
"But if it comes in around (consensus) or worse we might see the market continue to pull back in the way that is has been," he said. Despite good economic news locally in the past week, including a surprise 0.6 percent growth for the quarter, AMP Capital Investors chief economist Shane Oliver said shares appeared to have hit an "air pocket".
"With shares having risen so far so fast from the March lows and with September/October being a tough time of the year for shares there is a risk of a consolidation or correction over the next month or so," said Oliver. However, he said any weakness would likely be "muted" against a broadly strong trend in shares over the past six months.
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