The Australian share market is tipped to open positively but could be in for a mixed week as fears of a second wave of COVID-19 remain.
AMP Capital chief economist Shane Oliver suspects the S&P/ASX200 benchmark index to open up about 20 points on Monday after the Dow Jones Industrial Average bounced back up 1.9 per cent on Friday.
It comes as the S&P/ASX200 benchmark index was on Friday down 112.8 points, or 1.89 per cent, at 5,847.8 points.
But, the market could be in for a mixed week as concerns of a second wave of COVID-19 remain “front and centre” following an outbreak in the Chinese capital of Beijing, Dr Oliver said.
Beijing has locked down 11 residential communities near a wholesale food market after 45 workers tested positive to COVID-19.
“Second wave concerns remain which means it will probably be a wobbly week for shares,” Dr Oliver told AAP on Sunday.
Concerns some states in the United States are also seeing an increase in virus cases are adding to the uncertainty.
It’s a big week for economic data in Australia with May’s unemployment figures to be released on Thursday.
Surveys from the Australian Bureau of Statistics about the impact of COVID-19 on households and payroll enrolment will also be watched closely when they’re released on Monday and Tuesday.
The Reserve Bank is also due to release its minutes from a meeting two weeks ago on Tuesday.
“The ABS surveys will be watched closely on signs the labour market may have bombed out,” Dr Oliver said.
“But the main focus will be those job figures on Thursday.”
Figures on house prices for the March quarter will also be released which Dr Oliver expects to show a rise of two to three per cent, but he notes the data is a bit dated.
The Australian dollar rose slightly on Saturday and was buying 68.6 US cents. While it has bounced back a bit, it’s still well below the highs of previous weeks, Dr Oliver said.