The Australian sharemarket is poised for a soft start to the week on Monday, with ASX 200 futures pointing to a 0.4% decline at the open — despite European equities surging to a fresh record high overnight and the Australian dollar finding firmer footing.
European rally fails to lift ASX mood
While Wall Street was closed for the US Independence Day public holiday on Friday, European markets pushed higher, with the Eurostoxx 50 gaining 0.8% to reach a new record high. However, that momentum appears unlikely to carry over to the local bourse, with futures signalling a muted and slightly negative open after what had been a solid rally on the ASX in the previous week.
The Australian dollar has lifted, offering some modest encouragement for currency watchers, but it has done little to shift the cautious tone surrounding domestic equities heading into Monday's session.
Quiet day ahead on the data front
It shapes as a relatively subdued day for economic data releases. Two key private sector publications are expected during the morning session:
- ANZ job advertisements series — a closely watched indicator of labour market conditions
- Melbourne Institute inflation gauge — providing an early read on domestic price pressures ahead of official figures
There are no major offshore macro events scheduled to drive sentiment through the day, meaning local traders will likely take their cues from the technical picture and any updates on the earnings or corporate news front.
With the ASX coming off a strong prior week, some degree of consolidation or profit-taking at the open would not be unexpected. Markets will be watching whether Wall Street, which resumes trade on Monday night Australian time, can provide a cleaner directional signal for the rest of the week.
This article is intended as financial news coverage only and should not be construed as investment advice.
