Australian shares are expected to open slightly lower on Monday despite a record-setting session on Wall Street as investors prepare for a busy week of economic data and commentary from the Reserve Bank of Australia (RBA).
The ASX 200 is forecast to begin the week modestly weaker after Australian Securities Exchange (ASX) futures trading indicated the benchmark index would begin 13 points or 0.1% below Friday’s close of 8,731.7 points.
The softer outlook follows a strong finish to last week when the ASX 200 rallied 1.6% on optimism that tensions in the Middle East may continue to ease after reports of progress towards a United States-Iran agreement.
In New York, the Dow Jones Industrial Average rose 0.7%, the S&P 500 added 0.2%, and the Nasdaq Composite put on 0.2% on Friday (Saturday AEST) with all three ending at new closing peaks.
Technology stocks again led the advance after Dell Technologies lifted its full-year profit and revenue forecasts, triggering a surge across artificial intelligence (AI)-linked shares.
The S&P 500 has recorded nine consecutive weekly gains, its longest winning streak since late 2023, as investors continue to embrace strong corporate earnings and enthusiasm surrounding AI-related investment opportunities.
"There’s definitely euphoric sentiment in the market around AI. The rally has really been driven by earnings," Wells Fargo chief equity strategist Ohsung Kwon was quoted as saying in a Reuters article.
The Australian market is opening a busy week of economic data, which includes first-quarter gross domestic product figures on Wednesday and RBA Governor Michele Bullock appearing before a Senate committee on Thursday.
The ASX 200 Index rose 1.6% to 8,731.7 points on Friday as nine of the 11 sectors ended in the green.
In fixed interest markets, the Australian Government bond yield curve steepened as two-year rates dipped by 0.45% to 4.543% and 10-year rates rose by 0.37% to 4.868% at the time of writing.
