ASX expected to open flat
The Australian share market is expected to open flat on Monday before hitting record highs this week if the US-China deal goes ahead.
The futures market is expected to have a "flat start" down three points on Monday, CommSec chief economist Craig James told AAP on Sunday.
"That just reflects the fact we pre-empted the US strength on Friday and that was confirmed, so we will start off the week pretty square," Mr James said.
It comes after the benchmark S&P/ASX200 index closed on Friday up 58.6 points, or 0.87 per cent, to 6,793.7 points, while the broader All Ordinaries was up 58.1 points, or 0.85 per cent, to 6,898.9 points.
All eyes will be on the US-China deal as to whether the Aussie market hits new highs.
"The US-China deal is going to be one of the factors if we get back to record highs over the week. We do need that global momentum," Mr James said.
The Australian market on Monday is expected to be propped up by the energy and resources sector after the oil price rose, with Nymex up by 1.7 per cent and the iron ore price up by $1.35 or 1.6 per cent.
"Monday should still be continued to be supported by ... the energy and iron ore sector and the fact that there is a bit of optimism to start the week," he said.
It comes off a strong result on Friday, Mr James said.
"Certainly on Friday in the United States, they didn't disappoint. The US markets went up solidly by between 0.7 and 0.8 per cent and, all the major indices were at record highs," he said.
The Aussie dollar on Friday hit its lowest level against its US counterpart since October 17 following the release of October jobs figures that showed unemployment unexpectedly rising to 5.3 per cent.
But it's managed to claw its way back to start this week at 68.2 US cents.
The minutes of the last Reserve Bank meeting are due on Tuesday, while it is not expected to cut the cash rate until February.
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