SYDNEY (XFN-ASIA) - Share prices are expected to open mixed following a negative lead from Wall Street on Friday, while higher metal prices and positive sentiment from last week's record levels are likely to support the market, dealers said.
Upward revisions to prior months' US nonfarm payrolls data led US investors to scale back expectations for a Federal Reserve rate cut in early 2007.
However, dealers said local investors will soon focus on tomorrow's Reserve Bank of Australia monthly board meeting where a 25-basis-point interest rate hike is widely expected to be announced on Wednesday morning.
They said this is likely to lead to profit-taking through the remainder of the week.
The S&P/ASX 200 December futures contract ended its overnight session up 7.0 points at 5,436.0, suggesting a mild positive start to trading.
On Friday, share prices closed at fresh record highs after the country's largest bank, National Australia Bank, reported its highest ever full-year earnings, which gave market sentiment a big lift.
The S&P/ASX 200 rose 22.6 points or 0.42 pct to close at a record 5,432.0, after setting a fresh intraday high of 5,432.5.
The All Ordinaries Index advanced 19.8 points to settle at an all-time high of 5,396.9.
In New York, the Dow Jones Industrial Average rose 32.5 points or 0.27 pct to end at 11,986.04, the sixth straight decline and its longest losing streak in more than a year.
News Corp gained 0.23 pct while National Australia Bank's American Depositary Receipts jumped 3.23 pct following its record profit announced on Friday.
In London, leading shares closed lower after the negative lead from the US payrolls data, as well as revenue concerns with blue-chip stocks including British Airways.
The FTSE 100 index ended down 1.2 points at 6,148.1. BHP Billiton was flat while Rio Tinto fell 0.58 pct.
Base metal prices were generally higher in London trade on Friday. The exception was nickel which lost 2.2 pct despite tight conditions given inventories for the metal on the London Metal Exchange stand at just two days world consumption.
The price of gold rose to a new eight-week high, taking the lead from a higher oil price rather than a stronger greenback. The December benchmark Comex gold contract added 1.40 usd an ounce to settle at 629.20.
Oil prices climbed on Friday after heightened concerns that facilities in Nigeria could be attacked. The December Nymex crude contract rose 1.26 usd to close at 59.14 usd a barrel.
(1 usd = 1.30 aud)
paul.daniel@xfn.com
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