Aust share market expected to open higher

THE Australian share market is expected to open higher on Monday despite lacklustre trading on Wall Street on Friday.

US markets closed mixed but were almost flat on Friday as investors weighed disappointing company earnings against a slightly better-than-expected estimate of US economic growth in the third quarter.

The Dow Jones Industrial Average closed 3.53 points, or 0.03 per cent, higher at 13,107.21 points.

The broader S&P 500 index dipped 1.03 points, or 0.07 per cent, to 1,411.94 points, and the Nasdaq Composite index added 1.83 points, or 0.06 per cent, to 2,987.95 points.

Company earnings were the main driver of the US market, with iPad maker Apple losing 0.9 per cent after missing expectations in its quarterly report.

Amazon bounced 6.9 per cent upwards despite posting a loss and cautious outlook for the holiday shopping season.

The first government estimate of third-quarter GDP (gross domestic product) growth in the US came in at 2.0 per cent, up from 1.3 per cent in the prior quarter but not enough to generate much optimism.

AMP Capital chief economist Shane Oliver said the US GDP data was okay but investors remained cautious in relation to corporate earnings.

"However, the failure of European and US shares to follow through with sharp falls as seen in several Asian share markets on Friday saw ASX (Australian Securities Exchange) futures gain 18 points or 0.4 per cent, suggesting a positive start to trade on Monday for the Australian share market after a 0.8 per cent fall on Friday," Dr Oliver said.

However, Dr Oliver said global share markets were in still in a correction/consolidation mode.

Given uncertainties regarding the US presidential election and the US economy, short-term earnings downgrades, unresolved issues in debt-ridden Europe and the Chinese leadership transition, the correction may have a bit further to run over the near term.

In Australia this week, the season for company annual general meetings continues, with the Bendigo and Adelaide Bank AGM on Monday; Commonwealth Bank, Crown and Flight Centre on Tuesday; Consolidated Media Holdings, JB Hi-Fi and Tabcorp Holdings on Wednesday; Boral, Perpetual, Transfield Services and Whitehaven Coal on Thursday; and Qantas on Friday.

On Wednesday, National Australia Bank releases its full-year profit results.

On the economic front, the Australian Bureau of Statistics releases data on building approvals for September, on Wednesday.

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