Australian investors will be keenly watching the outcome of the French elections, as an expected victory of Emmanuel Macron is likely to boost local trade.
The Australian share market declined for a fourth straight session on Friday, with the benchmark S&P/ASX200 down 39.8 points, or 0.68 per cent, at 5,836.6 points while the broader All Ordinaries index was down 40.7 points, or 0.69 per cent, at 5,863.8 points.
But things are looking up for the market on Monday as futures trading in the Australian market point to a gain of around 55 points, or 0.9 per cent, AMP Capital chief economist Shane Oliver told AAP.
However this movement will entirely depend on the French election result on Sunday, with a victory for centrist Mr Macron likely to bolster trade while a win for his far-right rival Marine Le Pen could cause a knee-jerk reaction, Dr Oliver said.
"If Macron wins, as polls suggest, we'll probably see a little bit more upside from that because his policies are seen as pro-Euro," he said.
"Alternatively if he loses we might end up being down on Monday."
While a plunging iron ore price will put a greater focus on Chinese trade figures.
"Recently we've seen concerns about Chinese economic growth remerge," Dr Oliver said.
Locally, the big focus for investors will be the federal budget which is due to be unveiled on Tuesday.
Leaked details of infrastructure spending and housing affordability measures were giving investors optimism, Dr Oliver said.
"If you've got this infrastructure spending, that will help the economy," he said.
"At the same time if the budget numbering looks sound and the ratings agencies are happy then those things combined will probably be a positive for the Aussie dollar."
Retail sales figures are due out on Tuesday and are expected to rise after falling in February and the NAB business survey will give a snapshot of business conditions in the country.
"But most of the interest will be on the French election result and the budget outcome," he said.
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