Australia’s ASX index whipsawed in the wake of the UK’s vote to leave the EU, but then managed to post four consecutive days of gains. However, the uncertainty the weekend’s Australian election has brought is likely to impact the current upward momentum in the ASX.
Global market sentiment is likely to be a bigger driver for the ASX than the elections, although the elections may result in some initial selling. If the ASX does manage to find some buying this week, then its first target would be regaining its pre-Brexit close of 5281. But there is a real risk that some of the post-Brexit ebullience disappears from markets this week and begins to weigh on them instead.