On Friday the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished the day with a decline of 0.1%, meaning the index posted a weekly decline of approximately 0.5%.
Will the index perform better this week? Here are five things that could shape the day ahead:
ASX futures are pointing lower.
According to the latest SPI futures, the Australian share market is expected to open the week 0.5% or 30 points lower following a weak end to the week on Wall Street. On Friday the Dow Jones Industrial Average was marginally higher, but the S&P 500 was down almost 0.3% and the Nasdaq was off 0.4%.
Royal Commission resumes.
Round three of the Royal Commission commences on Monday with a focus on loans to small and medium enterprises. Shareholders of Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four will be hoping for no more bombshells.
Oil prices give back some gains.
Energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could come under pressure on Monday after oil prices gave back some recent gains. According to Bloomberg, WTI crude oil fell 0.3% to US$71.28 a barrel and the Brent crude oil price fell 1% to US$78.51 a barrel. Profit taking ahead of the weekend break was believed to be behind the decline.
Infant formula shares will be on watch.
The shares of A2 Milk Company Ltd (ASX: A2M) and Bellamy's Australia Ltd (ASX: BAL) will be on watch today after last week's sizeable selloff. Last week A2 Milk share price fell 15.5% and Bellamy's share price lost 15.3% of its value. Investors appear concerned about whether the two companies can live up to their premium valuations.
Elders goes ex-dividend.
Elders Ltd (ASX: ELD) is likely to sink lower this morning after the agribusiness company's shares go ex-dividend for its 9 cents per share interim dividend. This will be paid to eligible shareholders on June 15. Elsewhere, eligible shareholders of Money3 Corporation Limited (ASX: MNY) will receive its 4.5 cents per share interim dividend today.
