A positive global lead on Friday night should see the ASX 200 shaping up with a 30 plus point gain today to reverse the sell big sell-off on Thursday and Friday.
The ASX 200 shed 1.6% on Thursday and Friday wiping out the sizeable gains made on Monday, Tuesday, and Wednesday.
That saw the ASX 200 close the week 0.6 points higher at 6181.3, while the All Ordinaries rose 8.9 points, or 0.1%, to 6270.6.
Eurozone shares rose 0.2% and the US S&P 500 gained 0.5% on Friday helped by are bound in US jobs creation in March.
Overnight trading saw ASX 200 futures rise 32 points or 0.5% by the close on Saturday morning pointing to a positive start this morning.
But watch for increasing uncertainty over the timing of the federal election – the longer Prime Minister Morrison delays, the more damaging it will be to consumer and business confidence.
As well, Chinese economic data for March and the March quarter starts flowing on Thursday and Friday and will test the newly emerged confidence that the lackluster economy seems to be travelling a bit better (according to start of the months manufacturing and service sector activity surveys last week).
The Aussie dollar ended the week around 71 US cents, while iron ore prices had a solid gain, but thermal coal prices continued falling on problems in China Down from $US120 a tonne a year ago to under $US80 a tonne late last week in Newcastle.
Australian shares had hit another six-month high on Wednesday just before the close at 6,287 but then fell on nervousness from offshore and local political uncertainty about the budget and the forthcoming federal election.
“Sharemarkets pushed higher over the last week helped by more ‘green shoots’ pointing to improving global growth this year, including Chinese business conditions PMIs & the US ISM index and a stabilisation in Eurozone composite PMIs, and more indications that the US and China are getting closer to a deal on trade, albeit with issues around enforcement and the removal of last year’s tariff hikes yet to be agreed,” said AMP chief economist Shane Oliver.
BHP Group shares ended the week up 1.9% at $39.22, Rio Tinto rose 2% to $99.91 and Fortescue Metals Group advanced 9.4% to $7.78 as the price of lower quality iron ore (58% Fe) which is Fortescue’s staple export product, rose faster than the standard 61% and 62% ores shipped by BHP and Rio.
Shares in car dealer, Automotive Holdings jumped 23% to $2.15 after it received a big from 28.8% shareholder and rival car dealer, AP Eagers (which is 36% owned by Nick Politis, a Sydney millionaire and big supporter of Eastern Suburbs NRL club).
The all-paper offer implies a value of $1.92 for each Automotive share. Analysts have noted the absence of any cash which could make the offer hard to get over the line given the weakness around car sales currently.
AP Eagers’ shares closed the week 4.6% higher at $7.69 so there is some support in the market for the idea.
The major banks were mixed this week. NAB closed 1.8% lower at $24.81, Commonwealth Bank rose 0.4% to $70.89, Westpac shares edged up 0.5% to $26.05 and ANZ shares ended up 0.3% $25.95.
That was a repeat of the previous week’s performance and investors are now waiting for the interim profits from the NAB, ANZ and Westpac next month (and the full year results from Macquarie).
A hint may come this week with the interim figures from the Bank of Queensland which has already warned of a half year lower result.
