Aussie investors should brace for a soft opening on Monday after Wall Street and European markets closed the week at a loss.
Commsec chief economist Craig James said investors were spooked about the jump in US bond yields, while technology stocks were down on Wall Street.
“We’re likely to see a soft opening in trading here,” Mr James told AAP on Sunday.
“From a global perspective, nothing is really inspiring us to move higher.”
The local market was down moderately on Friday, largely due to losses in the mining sector.
The benchmark S&P/ASX200 was down 12.2 points, or 0.21 per cent, at 5,868.8 points, while the broader All Ordinaries index was down 12 points, or 0.2 per cent, at 5,964.4 points.
Mr James said there had still been gains in the past two weeks despite the market closing down on Friday.
In the US, the Dow Jones Industrial Average fell 202.09 points, or 0.82 per cent, to 24,462.8, the S&P 500 lost 22.98 points, or 0.85 per cent, to 2,670.15 and the Nasdaq Composite dropped 91.93 points, or 1.27 per cent, to 7,146.13.
Despite Friday’s decline, the S&P eked out a gain of 0.5 per cent for the week to show its second weekly gain in a row.
Meanwhile, the Australian dollar was lower against the US dollar after the release of disappointing local jobs figures on Thursday.
At 1700 AEST on Friday, the local currency was worth 77.09 US cents, from 78.01 US cents on Thursday.
Mr James said inflation would be in the spotlight for local investors this week.
Tuesday will be busy with the release of the Australian Bureau of Statistics (ABS) March quarter consumer price index, with growth tipped to increase by around two per cent for the year.
Meanwhile, ANZ and Roy Morgan will issue the weekly gauge of consumer confidence, and the Reserve Bank Assistant Governor Christopher Kent will speak at a Housing Industry Association breakfast.
On Friday, the ABS release the producer price indexes that will provide a measure on inflation across the business sector.