ASX edges lower but improves for the week

The news: The Australian sharemarket finished lower on Friday, but was up for the week after monetary policy optimism and encouraging economic data buoyed equities. Oil prices rolled over after an OPEC+ meeting to deepen or lengthen supply curbs came with an optional proviso, which member Angola quickly availed of. Brent crude rounded out its sixth straight week of declines and is trading at USD80.47 a barrel, while West Texas lost 0.3% to trade at USD75.73 per barrel, slightly higher than this time last week.

The numbers: The benchmark ASX 200 lost 0.20% on Friday but finished 0.46% higher for the week. The Australian dollar has lost ground against the greenback, but is holding just above the 66 US cent level at 66.1 US cents. Most of the 11 sectors finished in the red, although energy, real estate and health care stocks were broadly flat. IT stocks recorded the steepest decline, losing 1.1% and tracking with a similar slip on the tech-heavy Nasdaq overnight.

The context: US markets rallied this week as investors all but priced in Federal Reserve rate cuts in the first half of 2024. Fed officials have urged caution in response, so all eyes will be on the central bank chair Jerome Powell's two public appearances overnight tonight. On Monday, Origin shareholders will vote on the takeover offer from a consortium led by Brookfield and EIG, which has been encouraged by the board but slammed by major shareholder AustralianSuper. On Tuesday, the Reserve Bank will make its monthly cash rate decision, and ABS quarterly GDP data will follow on Wednesday.