A reasonably positive opening is expected on the local markets on Monday after Wall Street hit record closing highs on Friday.
"I suspect the market will open up, the US moved higher on Friday as did Europe," AMP Capital's chief economist Shane Oliver told AAP.
US stocks were boosted after the US Senate passed a budget resolution that lifted hopes of tax-cut reform moving forward.
The Dow registered a sixth week of gains, while the S&P 500 was up 0.9 per cent for the week and the Nasdaq added 0.4 per cent.
Dr Oliver said investors had been waiting all year to see if the reforms would go ahead in the US.
"It's starting to happen, and it does provide confidence tax reform is on track," he said.
Globally share markets and investors like tax cuts, so Dr Oliver suspects the reforms would provide a boost to the US and global economies.
He said the unrest in Spain with Catalonia pushing for independence was not having any significant impact on the markets.
"It seems to be an internal Spanish issue, it hasn't really had any impact," Dr Oliver said.
Locally, the Australian share markets closed at its highest level since May.
The benchmark S&P/ASX200 index was up 10.9 points, or 0.18 per cent, at 5,907 points on Friday, with most sectors making gains.
The local currency was trading at 78.45 US cents.
Investors will look to inflation readings this week. On Wednesday the Australian Bureau of Statistics releases the inflation report for the September quarter.
Dr Oliver suspects it will show an annual rise of around two per cent for the year so far, which is likely to signal interest rates will remain on hold for the foreseeable future.
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