Futures point to the sharemarket opening 1.5 per cent higher on Monday. US ISM manufacturing survey at lowest level since June 2020, while crude oil rallies.
Australian shares are headed for a 1.5 per cent rise at the start of trading on Monday after Wall Street rallied into the new financial year and bond yields sunk as the global tightening impulse meets fresh challenges.
Norwegian energy workers are plotting industrial action this week, while Libyan exports are severely depleted after its state oil producer was hobbled by blockades and political dysfunction in an admission of crisis late last week.JPMorgan published a $US380 barrel forecast under worst-case scenario modelling based on Russia’s cutting output in response to US and European sanctions.
While the survey is still in expansionary territory, the index dedicated to new orders slipped below the 50 level that defines a contraction, to 49.2 from 55.1. European inflation pressures appear to be raging still. The flash estimate for the monetary union’s annual consumer price growth in June rose 8.6 per cent, up from 8.1 per cent in May, data on Friday showed. Energy increased 41.9 per cent, but excluding the energy component, the harmonised index of consumer prices still grew by 5 per cent.