Shaky start to the STI this week

THE stock market appears set for a shaky start this week after last week's relatively decent showing, with the results of Italy's referendum on Sunday yet to be known till Monday morning and United States jobs data on Friday indicating that the Federal Reserve is probably still on track for a December rate hike.

Local shares may take their lead from the Dow's slight retreat last Friday after US unemployment fell to a nine-year low to 4.6 per cent in November. Traders have priced in a roughly 93 per cent probability that the Fed will raise the interest rates at its Dec 13-14 meeting, based on data from options and futures exchange CME Group.

Optimism over a recovery in oil prices following an Opec (Organization of the Petroleum Exporting Countries) agreement last week to curb production may also be short-lived, analysts caution.