

Tough start expected for Aus markets over global uncertainties

Tough start expected for Aus markets over global uncertainties

It will be another tough start for the Australian markets today as ongoing global uncertainties continue their ripple effect.

A fall of around 100 points on the share market's benchmark index is expected when it opens for the week, mirroring similar declines in the United States.

The release of Chinese economic data, tumbling oil prices and a US public holiday will all add to the uncertainty around global markets in the week ahead.

CommSec chief economist Craig James said the Australian market could fall around two per cent on opening, worse than last Monday's sharp fall of 1.5 percent.

"We'd expect the Australian market to follow the US low and we could see declines at the open of around about 100 points," he told AAP.

"It's going to be another difficult week for investors, there is a public holiday in the US on Monday which will be a consideration for the markets because we just don't know how the US is going to open on Tuesday.

"There was no simple catalyst for the decline in Wall Street other than financial investors are nervous."

The focus of the week ahead will again be on the slowing of the economy in China, which on Tuesday will release monthly economic data around growth, retail sales, production and investment.

"This is their key economic data and it has the potential to move markets either way depending on the results," he said.

On Friday all markets in the Asia-Pacific region had fallen into negative territory ahead of the data release.

The US will also release figures around inflation and housing stats.

On Friday, the benchmark S&P/ASX200 index closed 16.6 points, or 0.34 percent, lower at 4,892.8.

"The economy continues to perform well here in Australia and that provides some support for our markets," Mr James said.

"But investors are nervous and that's leading to falls in the US market and having ripple effects around the world.

"We can't separate ourselves from the rest of the world despite the fact our market is fairly valued."

With AAP


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