The Australian sharemarket looks set to open weaker on Monday as investor concerns over emerging markets persist.
AMP chief economist Shane Oliver also noted a sharp fall in US markets for the third week straight and weaker inflation figures, which led to a fall in European markets.
"All of those things are coming together, so I expect a soft open tomorrow," Dr Oliver told AAP, predicting a drop of up to 25 points on the local bourse.
"It's not the start of a bear market though, it's just an ongoing correction."
Dr Oliver said it would be a busy week with a slew of economic and corporate data to be released and a Reserve Bank board meeting on Tuesday afternoon.
The PMI, house pricing, building approvals, job ad figures and retail sales over Christmas are all due out.
More US majors will report quarterly results and US payroll employment figures are expected on Friday, with many analysts expecting a gain.
Dr Oliver was not expecting any movement from the Reserve Bank at Tuesday's meeting on cash rates, already at a record low of 2.5 per cent.
He said there were signs low rates were helping the economy, particularly the housing sector, and there had been an improvement in retail sales and business confidence.
"The Aussie dollar has come down, that economic data has been looking better and inflation has picked up a bit. I think the Reserve Bank will just sit tight," he said.
"I think for the next six months at least rates are going to be on hold."
The Reserve Bank is also due to release its quarterly statement of monetary policy later in the week.
The Aussie dollar is likely to remain shaky, Dr Oliver said, because whenever there were emerging markets worries there were concerns over commodity prices, which hit the local currency.
At 1700 AEDT on Friday, the Australian dollar was trading at 87.67 US cents.
Dr Oliver said he also expected bond yields to fall a bit more.
"I don't think it will be a lot more," he said.
At Friday's close, the benchmark S&P/ASX200 index was 1.9 points, or 0.04 per cent, higher at 5,190 while the broader All Ordinaries index was up 5.7 points, or 0.11 per cent, at 5,205.1.