Australian share market set for flat start

Australia's share market is set to open flat following weaker than expected US jobs growth and expectations the Federal Reserve will ease interest rates.

The benchmark S&P/ASX200 index closed on Friday up 34.1 points or 0.52 per cent, to 6,647.3 points, on the back of optimism that trade tensions could be easing.

CommSec chief economic Craig James predicts the market will open flat on Monday, after China again slashed the amount of cash banks must keep in reserve.

Weaker than expected jobs growth in the US has also raised the prospect of a looming Federal Reserve interest rate cut, while weak industrial orders out of Germany suggested a likely stimulus when the European Central Bank meets next.

"Overall for our share market, the expectation is that we'll get off to a flat start, basically echoing the sort of changes that we saw in the United States and Europe," Mr James told AAP on Sunday.

Lending figures due out Monday are expected to show a lift of about 2.5 per cent.

"That should indicate that Australian consumers, Australian home borrowers are back in action after the election and in response to lower interest rates," Mr James said.

Little change is expected in business and consumer confidence figures also due out this week.

"We're still waiting for Australian consumers to get a little bit more confident, spend some more money and provide a little bit more momentum for the business sector, particularly in terms of the retailers," Mr James said.

"But overall consumer confidence should be OK ... we're expecting little change from the previous month."

Austrlaian Associated PressBack to Breaking News

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