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Bank settlement could help Aus stocks

AAP logoAAP 2/10/2016

The potential settlement of a huge dispute between Deutsche Bank and the US Department of Justice could help Australia's stock market, experts say.

The giant German bank is facing a $US14 billion claim from the US government over the selling of mortgage securities, but could be close to a settlement.

"Deutsche Bank may be able to secure settlement on its dispute with the Department of Justice and that takes away one of the risk factors in the global environment," CommSec chief economist Craig James told AAP on Sunday.

He said the futures market was pointing to a gain of about 30 points once the ASX opens on Monday.

"We did see the gold price a little bit lower on Friday, iron ore was down as well, so that will be holding back our market to some extent. Overall (we) should expect a bit of a better day," Mr James said.

The Reserve Bank is due to look at interest rates this week, but Mr James said it was unlikely they will touch them.

"There's no expectation for the Reserve Bank to be touching interest rates, moving interest rates in any direction," he said.

"I think the Reserve Bank wants to look at the inflation figures before deciding its next move."

Mr James said October's employment and inflation figures, plus the outcome of the US presidential election, would be more likely to influence the Reserve Bank's decision in November.

Monday is a holiday in Queensland, NSW, the ACT and South Australia, but Mr James said the time off might give investors a chance to look at the market and make some trades.

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