US sharemarkets snapped a seven-week losing streak, closing 6.6 per cent higher.

The rebound was supported by the minutes from the May FOMC meeting that showed the Federal Reserve is not considering raising rates more aggressively than what’s expected.

And as the Fed’s preferred measure of inflation, Core PCE eased to its lowest level in four months.

The ASX200 locked in a second straight week of gains closing 0.5 per cent higher at 7182, supported by gains in the materials and financial sectors.

However, it was unable to break through a wall of selling ahead of the 7200-resistance zone that the local bourse has been pinned below in early May.

Here are the top five things to watch in markets this week.

1. Australian Q1 GDP

Q1 GDP is expected to rise by just 0.2 per cent quarter on quarter, with annual growth decelerating from 4.2 per cent to 2.5 per cent year on year.

Behind the slowdown, floods in New South Wales and Queensland and the Omicron outbreak at the start of the year.

Keep an eye on the household savings rate, which hit 19.8 per cent in the September quarter last year before falling to 13.6 per cent in the December quarter as consumers shopped up a storm after the reopening.

A further fall towards 10 per cent is expected when the GDP data is released on Wednesday.

2. ASX200 to pop

Last week the ASX200 was capped by a wall of selling ahead of 7200, a level that the ASX200 has been pinned below since early May.

Following a strong rebound on Wall Street, the 7200 level which was resistance should now become support, with stocks to receive additional support from month-end rebalancing flows.

3. Bank of Canada raise rates

The Bank of Canada is likely to raise the cash rate by 50 basis points from 1 per cent to 1.5 per cent.

The tone of the statement is likely to be hawkish with high inflation expected to see the cash rate raised to 2.5 per cent by year’s end.

4. US jobs data

US jobs data will be in focus as fears mount that the US labour market has tightened to a level that is unsustainable.

Expectations are for 310,000 new jobs to have been created in May and the unemployment rate to fall to 3.5 per cent.

5. OPEC+ to provide only modest increase in supply

OPEC+ meets this week to discuss whether to raise output in July.

Despite the price of crude oil trading above $115.00, near two-month highs, OPEC+ is expected to green light a modest 4320 per cent rise at this week’s meeting.

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