Australia shares seen posting modest gains, caution ahead of election

Australia shares seen posting modest gains, caution ahead of election
Business & Markets 2013
Written by Reuters
Friday, 06 September 2013 07:02

SYDNEY (Sept 6): Australian shares are seen posting modest gains in early trade on Friday following Wall Street, however investors may exercise caution ahead of the general election while a fall in metals prices may also dampen sentiment.

* Local share price index futures rose 0.2 percent, a 4.5-point premium to the underlying S&P/ASX 200 index close. The benchmark fell 0.4 percent on Thursday.

* New Zealand's benchmark NZX 50 index rose 0.1 percent in early trade.

* U.S. stocks edged up on Thursday, rising for a third day after strong data indicated improving economic conditions, with caution capping gains ahead of Friday's payrolls report and its implication on the Federal Reserve's stimulus program.

* Copper prices edged slightly lower, as the dollar strengthened but losses were capped by expectations that a revival in demand from top consumer China will gather pace. Gold sank almost 2 percent to two-week lows.

* Markets will continue to deal with the possibility of a U.S.-led strike against Syria, and U.S. President Barack Obama faces growing pressure at the Group of 20 summit in Russia not to use military force.

* Trading may be subdued ahead of the general election on Saturday, with polls indicating a decisive defeat for Prime Minister Kevin Rudd's Labor government.

* Wall St ticks up on data but Fed caution caps gains * Crude oil rises on strong U.S. economic data * Gold at 2-week low as US data fuels Fed tapering talk * Copper edges down as dollar soars. - Reuters