China data to lift weak sentiment
While the market is expected to open lower this week, the fall is likely to be softened by better than expected Chinese manufacturing data at the weekend.
The Australian market is expected to have a particularly soft opening on Monday after Wall Street shares ended lower for the second consecutive week.
At the end of the US holiday-shortened week, the S&P 500 was down 1.1 per cent at 1630.74.
The Dow Jones Industrial Average lost 1.2 per cent at 15,115.57, and the tech-heavy Nasdaq Composite ended slightly lower at 3455.91.
On the ASX 24, the June share price index futures contract is indicating the market will open 57 points, or 1.16 per cent, lower.
But data released at the weekend showed manufacturing activity in China unexpectedly rebounded in May.
AMP Capital chief economist Shane Oliver said the Chinese data should lift local mining stocks when the market opens and offset some of the effects of the negative lead from Wall Street. "I think we'll have a soft start but maybe not quite as weak as the fall on Wall Street would suggest," he said.
Locally, it will be a busy week for economic data, with the focus on the Reserve Bank's decision on interest rates and the Bureau of Statistics' national accounts. AAP