IG MARKETS SPONSORED POST
The Australian sharemarket is poised to start the week in negative territory, on the back of a negative lead from global markets, though Wall Street was closed on Friday. Shortly before 7am AEST, futures are pointing to a drop of 35 points, or 0.6 per cent, at the open.
As expected, it was a quiet end to the trading week for financial markets on Friday, with US markets offline for the Independence Day holiday. Overall, price action pointed to a general aversion to risk taking, amidst a dearth of economic and corporate news, as well as what was a day of much lower than average activity.
It capped off what was overall a bullish week for global markets. Economic data proved a catalyst for risk assets, as on balance, key economies across the globe re-open, despite the clear increase in COVID-19 cases across the world.
Friday’s tepid lead is setting up the ASX200 for a soft start this morning, with SPI Futures indicating a -0.6 per cent drop for the index at the open. It comes off the back of a positive day’s trade on Friday, and an overall positive week for Australian equities.
The ASX200 climbed 2.60 per cent for the 5-days up until Friday, to push the index close to a 1-month high. All sectors finished the trading week in the green, with IT stocks topping the market, followed by communications services and consumer sector stocks.
