Australian shares are expected to firm when the market opens on Monday, bolstered by Wall Street closing at record highs as investors turn their attention to a private survey of Chinese factory activity.

Despite losing ground on Friday, the S&P/ASX 200 Index and the All Ordinaries Index both added 0.3 per cent last week to 5417.5 and 5401.6 points respectively.

But with only six trading days left this financial year equity strategists are cautious in their outlook for the local market over the coming months, against a backdrop of conflicts in Iraq and Ukraine that may disrupt global energy markets.

"Some nervousness seems to be building about company reporting season in August," Citi's Australian head of investment strategy Tony Brennan said. "That isn't surprising, given the federal budget, weak iron ore prices and a few profit warnings, mostly from retailers."

Compared with other years, the number of profit warnings had been modest, which could reflect better business conditions over the past six to nine months, he said.

"But given a recent slippage in consumer confidence there could be a late rush of corporate confessions," Mr Brennan said.

On Sunday, the SPI 200 Futures Index was indicating the S&P/ASX 200 would open 0.2 per cent higher on Monday.

A flash reading of the HSBC Chinese manufacturing purchasing managers index for June, due for release at 11.45 am AEST, is expected to be the main catalyst for Australian shares on the day and set the tone for the week ahead.

Consensus forecasts predict the index will rise 0.4 points from May's reading of 49.4 to 49.8 points, just shy of the 50-point level that indicates when the rate of growth within the sector is starting to speed up rather than slow down.

The spot price of iron ore, delivered in China, recovered 1.4 per cent last week, after slumping 25 per cent since mid-April. Over the weekend Dalian iron ore futures trading indicated the spot price for the steel-making ingredient was set to gain another 1.2 per cent on Monday night.

On London's FTSE on Friday BHP Billiton added 0.5 per cent but Rio Tinto edged down 0.1 per cent.

A government survey of skilled job vacancies in May will be published on Wednesday, followed by an Australian Bureau of Statistics report of overall job vacancies in the three months to May due on Thursday.