Australian share prices are expected to rise next week as it recovers amid improving sentiment from recent losses, dealers said. For the week ending July 6, the benchmark S&P/ASX 200 rose 76.2 points or 1.2 percent to 6,351.1.
Macquarie private client adviser Helen Spencer said investors appeared to be taking an optimistic view towards the market. "Our market is bouncing along, certainly recovering quite well," she said.
AMP Capital Investors chief economist Shane Oliver said the fundamentals of the Australian market remained strong. "Valuations are still not stretched, profit growth remains solid," he said.
The main economic data released next week will relate to housing finance, consumer confidence and employment, a key inflationary indicator with unemployment at 32-year lows.
"Employment was probably flat in June but only after two strong gains in April and May with jobs up by more than 30,000 in each month," Commsec chief equities economist Craig James said. "The unemployment rate may have drifted up to 4.3 percent after hitting a 32-year low of 4.2 percent in May.
"There is little reason to expect a marked change in either business or consumer confidence readings. Interest rates are stable and the economy remains in good shape, while the chief worry - the price of petrol - has retreated to a seven-week low."
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