US data to make start flat
Published in Daily Telegraph, November 2009
The sharemarket is likely to open flat today, ahead of a raft of finance data expected during the week, while futures point to a small rise of about four points or 0.09 per cent.
On the US markets, the Dow Jones finished on Friday up 17.46 points, or 0.17 per cent, to close the week at 10,023.42 in choppy trading, while the Nasdaq rose 7.12 points, or 0.34 per cent, to 2112.44.
Earlier, the All Ords finished the week on 4606.4 points, up 85.2 on the day, and the S&P 200 closed at 4594, up 86 points on the day.
CommSec chief economist Craig James said he expected the local market to open flat today, following the release of data in the US.
"Wall Street has absorbed the latest payroll figures in the States and, while the latest results may have disappointed some analysts, there were some significant upward revisions to the previous month. So on balance it was a good result and the Dow Jones managed to finish modestly in positive territory," Mr James said.
We have absorbed the shock and gone out the other side and I think that means for our markets that we can get on with business," he said.
Wealth Within chief analyst Dale Gillham, however, is much more optimistic.
"Given the move down [last] week has only been minor, and it is likely that the market will rise strongly today, it is possible that the market will close higher for the week," Mr Gillham said.
This would indicate that the down move is most likely over, although over the last two years the market has trained us to expect the unexpected. Given this, it is possible that the market could fall slightly into next week.
That said, once the low occurs I believe the market will rise to around 5200 into January 2010 and possibly higher into February before moving into its yearly low at the end of the first quarter of 2010."
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