Investor nervousness over a possible curb to global oil supplies could put an end to the steady rise of the Australian share market sparked by Donald Trump's US election win, a leading economist says.
The Australian share market is expected to open flat on Monday after a fall in oil prices last week, with investors waiting to see whether oil producing nations will agree to restrict oil supplies on Wednesday.
"That'll probably sort of weigh on the market and consequently we'll probably have a flat start," AMP Capital's chief economist Shane Oliver told AAP.
On Friday the Australian market closed at a three month high with the benchmark S&P/ASX 200 index up 0.4 per cent to 5,507.8, its highest level since August 26.
"We've had quite strong, rapid gains since Donald Trump was elected but sooner or later we'll have a bit of a pause, maybe this will be it," Dr Oliver said.
Locally, data releases will be watched closely with building approval figures on Wednesday expected to bounce back from a fall in September.
Thursday's business investment numbers may give analysts an idea on GDP forecasts and company outlooks, he said.
"It will be looked at quite closely to see whether we're getting any closer to the bottom in business investment and particularly mining investment."
But overseas the focus will be on US employment numbers and an upcoming Italian referendum.
US non-farm payroll numbers are expected show a strong job market which will be consistent with the US Federal Reserve raising interest rates in mid-December.
While an upcoming Italian referendum on reducing senate powers next Sunday is causing apprehension among investors, as it could be the first step for Italy to leave the EU.
"A lot of dominoes have to fall over to get Italy to leave but obviously if the referendum is rejected investors will fret," Dr Oliver said.
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