Australian shares were likely to fluctuate, with any positive news to be offset by further signs of weakening demand in the commodities sector, dealers said. For the week ending February 6 the benchmark S&P/ASX 200 index dropped 70.8 points, or two percent, to close at 3,469.9. It rose 5.9 percent the previous week.
Investors would be looking to the oil price, base metals and Chinese trade data in the coming week, said Mark Perven, head of commodities research at ANZ Economics. "The latest (oil) inventory data from the US again just highlights how weak demand is at the moment," Perven told AFP. "That's likely to create the mood for the commodity markets generally next week, the health of the oil market. At this stage that health still looks pretty unwell." "That could change with any positive data out of the US but this market's pretty fickle at the moment, looking to buy on any positive news." Any sustained rally would need to be underpinned by a series of positive news - a prospect which, at this stage, seemed unlikely, Perven said.