Originally published by CMC Markets
Australian investors are looking at a better start to the week after shares and commodities ralliedon Friday night. A relatively data-lite week and a weakening US dollar could see support continue through the session, although the give up of even stronger gains toward the end of US trading may see a cautious start.
The gains in risk assets and pressure on bond markets are underpinned by lower than expected jobless claims. However ongoing concerns about the potential for instability in US politics and subsequent questions around the implementation of a stimulus agenda could see a reversal in sentiment at any time. The release of the April leading economic index for China could bring a local flavour to market moves.
The sliding US dollar is supporting commodity prices. Oil, copper and iron all traded higher on Friday night. Oil is making further gains on strong volumes in early Asia-Pacific trading, pointing to potential for further strength.
This week brings investor days for Challenger Ltd (AX:CGF) and Woodside Petroleum Ltd (AX:WPL), earnings reports from Fisher & Paykel Healthcare Ltd (AX:FPH), Aristocrat Leisure Ltd (AX:ALL), and AGMs for OZ Minerals Ltd (AX:OZL), Alumina Ltd (AX:AWC) and Adelaide Brighton Ltd (AX:ABC). Investors will turn to outlook statements and forward guidance as the most likely drivers of share price moves.