The Australian share market is tipped for a weak opening, with the Paris terror attacks likely to amplify investor nervousness.
AMP Capital chief economist Shane Oliver predicts the deadly attacks will have a negative impact on the local market, which was already expected to get off to a rough start on Monday.
"We were going to be down anyway in response to the weakness on Wall Street and further falls in commodity prices," he said.
"But we will get an extra push along with nervousness associated with the terrorist attacks."
Dr Oliver said the impact on the Australian market would most likely be short-lived.
"The lesson from past terror attacks seems to be there is an initial negative impact on share markets, particularly those in the country affected, but there can be some flow-on globally," he said.
"But unless there is some kind of lasting economic impact, the share market quickly moves on."
Dr Oliver suspected Wall Street, which experienced hefty falls on Friday, had already started to react to the terror attacks in the French capital, given it was still trading when news of horror began to filter through.
Wall Street dropped following falls in commodity prices and a Federal Reserve policymaker's hint of a December interest rate rise.
The Dow Jones dipped 1.16 per cent, the S&P 500 lost 1.12 per cent and the Nasdaq dropped 1.54 per cent on Friday.
It was the worst week for all three major indices since August, when fears about the health of China's economy and stock market slammed global asset prices.
Globally, all eyes would be on the US Fed's minutes to be released on Wednesday for a likely signal on a December interest rate rise, Dr Oliver said.
Locally, the Reserve Bank of Australia's minutes from its last meeting were unlikely to reveal anything of note on Tuesday, he said, while he expected new data would show wages remained weak.
Futures trading in the Australian market pointed to a dip of about 37 points, or 0.7 per cent, at Monday's open.
Dr Oliver anticipates the slide in mining stocks, which suffered hefty falls last week, will continue and the Australian dollar will resume its downward spiral.
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