Australia Markets closed

Australian market set to open higher

 

The Australian market looks set to open modestly higher after Wall Street's main three indexes again close at record highs.

At 0700 AEST on Monday, the share price futures index was up 10 points, or 0.17 per cent, at 5,797.

In the US, data showed that non-farm payrolls increased 138,000 in May, well short of the 185,000 expected by economists. Also, April and March were revised lower by 66,000 jobs than previously reported.

But markets still expect the Federal Reserve to increase interest rates in June with traders expecting a 90.7 per cent chance of a quarter-point hike, according to Thomson Reuters data.

The jobs figures appeared to do little to dent investor sentiment: the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all closed at record highs.

Locally, in economic news on Monday, the Australian Bureau of Statistics' business indicators for the March quarter are due out.

The ANZ job advertisements series for May is expected, as is the CoreLogic capital city house prices survey for the week just ended.

No major equities news is expected.

The Australian market on Friday ended the week on a high note, posting its best day since March as strong overseas markets added a tailwind and traders bought back into banks and miners.

The benchmark S&P/ASX200 index rose 50 points, or 0.87 per cent, at 5,788.1 points.

The broader All Ordinaries index lifted 48.6 points, or 0.84 per cent, at 5,821.1 points.

Meanwhile, the Australian dollar is comfortably back above 74 US cent after the US jobs report hurt the greenback.

The local currency was trading at 74.26 US cents at 0700 AEST on Monday, from 73.90 US cents on Friday.

CURRENCY SNAPSHOT AT 0700 AEST:

One Australian dollar buys:

* 74.26 US cents, from 73.90 on Friday

* 82.00 Japanese yen, from 82.47 yen

* 65.88 euro cents, from 65.88 cents

* 57.75 British pence, from 57.46 pence

* 104.14 New Zealand cents, from 104.44 NZ cents

BOND SNAPSHOT AT 0700 AEST:

* CGS 4.50 per cent April 2020, 1.6618pct, from 1.6594pct

* CGS 4.75pct April 2027, 2.4125pct, from 2.4135pct

Sydney Futures Exchange prices:

* June 2017 10-year bond futures contract at 97.60 (implying a yield of 2.40pct), from 97.56 (implying a yield of 2.44pct) on Friday

* June 2017 3-year bond futures contract at 98.32 (1.68pct), from 98.29 (1.71pct).

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)