The Australian share market is predicted to fall on Monday after weak manufacturing data from China and cutbacks to the US economic stimulas causes turmoil.
This however is not all bad news for investors as companies exposed to overseas markets and prices will enjoy a rise in commodity prices, according to AAP.
The drop comes with Thursday’s announcement that the US Federal Reserve could start winding back its $US85 billion-a-month cash stimulus program, known as QE, and HSBC group’s PMI index shows manufacturing activity is shrinking in China in May.
AMP Capital chief economist Shane Oliver says the Australian market will open about 30 points lower on Monday.
The AAP reported his view is reflected in the ASX futures market, which is indicating a 33-point fall.
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