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The Australian stock market should start the week down, while Wall Street has reached an all-time high.
The three Wall Street indexes broke records on Friday, with the S & P 500 index hovering above 30,000 for the first time. The Dow Jones Industrial Average Index closed up 243.95 points, or 0.9%, to 27,332.03, and the NASDAQ, 48.10 points, or 0.6%, to 8244, 14.
Despite this, the futures market suggests that the ASX will open down Monday.
"Surprisingly, futures are down 30 points, suggesting that despite Wall Street's rebound, our market could open a little more weakly," said Sunday's economist. in chief of AMP Capital, Shane Oliver.
"In fact, I would be surprised that he's opening the game as low.I think it's going to open on the soft side, but it's probably more likely that it's 10 or 20 points."
The US Federal Reserve is expected to lower interest rates for the first time in ten years, so its chairman, Jerome Powell, will be paying close attention on Tuesday, said Dr Oliver.
"It will probably confirm that the Fed will reduce interest rates in the coming weeks," he said.
"Australia has started first and is starting to think that the United States will do it after a period of interest rate hikes in 2015," he said, noting that the United States is not going to be able to do so. Europe would probably do the same.
In Australia, the S & P / ASX200 benchmark on Friday closed down 19.6 points or 0.29% to settle at 6,696.5 points.
The June Labor Force Survey will be released on Thursday. The unemployment rate is expected to remain at 5.2%, along with employment growth of 10 to 20,000 people.
"These numbers will be looked at very closely.If unemployment does not decline much, it makes sense for the Reserve Bank to do more to reduce interest rates," said Dr. Oliver.
The minutes of the last meeting of the RBA will be released on Tuesday and will likely echo Governor Philip Lowe's recent remarks that the outlook remains "reasonable" with further easing based on data.
"For the moment, the RBA is quite happy to watch how things unfold," said Dr. Oliver, noting that the AMP predicts another rate cut in November.
The market is also looking forward to the latest data on economic growth in China and retail sales from the United States.
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