ASX to dip at open despite Wall St rally

Bruised Australian stocks look set to take another dive at the dawn of a new trading week, with the futures market not appearing to have taken a hint from Wall Street's late-week rally, or a slight jump in metals prices.

The SPI200 futures contract was down 51 points, or 0.87 per cent, to 5,803.0 at 0800 AEDT on Monday, pointing to a further retreat at the open for the ASX, hot off the heels of its worst trading week in almost three years.

On Wall Street, The US benchmark S&P 500 had snapped a six-day losing streak on Friday, with investors looking for bargains ahead of the third quarter earnings reporting season.

The Dow Jones Industrial Average also rose on Friday, gaining 287.16 points, or 1.15 percent, to 25,339.99, and the Nasdaq Composite added 167.83 points, or 2.29 percent, to 7,496.89.

But analysts warn that until the US and China reach a trade deal, the rebound in the stockmarket could be vulnerable with investors anxious about the impact of tariffs on corporate profits.

Oil prices followed the US market to close slightly higher, while metals also rebounded with modest gains.

But gold prices, which added rare lustre to the market during an otherwise subdued week, are set to dip as global stocks rebound and the US dollar gains.

The Australian dollar was trading at 71.12 US cents on Monday, down from its highs of last week when it topped 72 cents.

In local news on Monday, Wesfarmers will announce the first quarter retail sales results for Coles, having already confirmed plans to demerge the supermarket chain next month.

Meanwhile, telco giant Telstra will hold its annual general meeting in Sydney.

On Tuesday the Reserve Bank will release its latest board minutes, having left interest rates on hold at 1.5 per cent earlier this month.

Let's block ads! (Why?)