The West

ASX tipped to open higher
ASX tipped to open higher

The Australian sharemarket is expected to open higher this week, after a positive lead from United States and European markets.

On Wall Street on Friday, stocks surged more than two per cent, boosted by measures adopted by European leaders meeting in Brussels to stem the eurozone crisis and stimulate growth.

The benchmark Dow Jones Industrial Average rose 277.83 points, or 2.20 per cent, to 12,880.10 points.

The broader S&P 500 index added 33.12 points, or 2.49 per cent, to 1,362.16 points, while the tech-rich Nasdaq lifted 85.56 points, or 3.00 per cent, to 2,935.05 points.

CommSec chief economist Craig James said the Australian market should have a very positive start to the new financial year.

"We have already moved ahead of the European and US markets on Friday once the news of the European agreement came through, but we've still got some gains to make up," Mr James said on Sunday.

"I think we could put on another one per cent, so up in the region of 40-odd points. There's no reason why our market needs to lag behind."

On Friday, the Australian share market rose about 1.2 per cent, with investors heartened by the fact that European leaders looked like they had settled on a plan to contain the euro zone's debt crisis - at least in the short term.

Mr James said commodity prices had made strong gains and risks to the global economy had dissipated.

However, economic data from China could affect market sentiment.

China's economy was subdued at the moment, but the Chinese government had the potential to ramp up activity.

Mr James said investors' attention over the week would turn towards economic data from the US, which includes job figures.

On the economic front in Australia, the Reserve Bank meets on Tuesday and makes its latest decision on interest rates.

The West Australian

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