The Australian sharemarket is expected to open higher on Monday after US stocks ignored the release of disappointing Chinese trade data and ended last week positively.
European and Asian markets fell along with Australia's stock exchange on Friday, suggesting investors feared that a sharp decline in China's trade growth in July signalled further weakness in the world economy.
However, Wall Street shrugged off those worries, with the benchmark Dow Jones Industrial Average index rising a modest 42.76 points to 13,208 points.
The S&P 500 index, a broader measure of the markets, rose for a fifth week in a row, lifting 3.07 points to 1,405.87 points, and the Nasdaq index gained a tiny 2.22 points to 3,020.86.
The ASX 200 futures index was up 17 points at 4,272 on Sunday, pointing to a positive start in Australia on Monday.
CommSec chief economist Craig James said he thought markets in Australia, Asia and Europe had over-reacted to the Chinese figures.
He thought the falls were profit taking.
The Australian market is up seven per cent since hitting a year low in the first week of June, while European markets have also rallied in recent weeks.
"The US basically said there was nothing to worry about and we should get a bounce back on Monday," he told AAP.
However, there is speculation policy makers will take measures such as cutting interest rates or cutting banks' reserve requirements to spur the economy.
On the Australian company front, the earnings season gets into full swing following a week of weaker results last week, with engineering firm Downer EDI, retailer JB Hi-Fi and gold miner Newcrest reporting on Monday.
On the local economic front, the June quarter wage price index out on Wednesday is expected to show a one per cent gain in wages.
That points to a 3.7 per cent gain for the year, which the Reserve Bank would be content with, as underlying inflation was about 2 per cent and productivity growth was 1.5 per cent, Mr James said.
The NAB business survey, to be released on Tuesday, is likely to show business conditions and confidence rising modestly but still at poor levels.
The Australian dollar gained more than half a cent to 105.75 US cents in offshore trading on Friday.
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