On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its poor run with a 1.3% decline to 5,505.8 points.
Will the market be able to bounce back on Friday and finish the week on a positive note? Here are five things to watch:
ASX futures pointing lower.
According the latest SPI futures, the ASX 200 is expected to open the day 0.25% or 13 points lower following another selloff on Wall Street. Late in U.S. trade the Dow Jones is down 1.8%, the S&P 500 has fallen 2%, and the Nasdaq has dropped 1.7%. U.S. shares have tumbled lower due to concerns over a potential government shutdown.
Oil prices crash lower again.
Australian energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could come under pressure again on Friday after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price fell 4.6% to US$45.97 a barrel and the Brent crude oil price tumbled 4.7% to US$54.53 a barrel. A weaker outlook for demand from Asia weighed on prices.
Tech shares could be on the decline.
Australian tech shares including Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC) will be on watch on Friday after the Nasdaq fell heavily overnight. FAANG stocks weighed heavily on the index, taking it into bear market territory. Appen, WiseTech and the rest of the WAAAX group of shares often move in tow with the Nasdaq.
Insurance shares will be on watch.
All eyes will be on Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE) shares today after Sydney was hit with a severe storm. According to the SMH, emergency service workers have said it was one of the worst hailstorms to hit the city in two decades. The Insurance Council of Australia has declared the event an insurance catastrophe.
Strong infant formula export data.
The A2 Milk Company Ltd (ASX: A2M) share price could be given a boost today after Goldman Sachs revealed that its research shows a sharp increase in infant formula exports from the New Zealand Port of Lyttelton during November. The note says: "Infant formula export volumes (by weight) from Lyttelton (to Australia, Hong Kong and China combined) were strong in November, +51% MoM and +227% YoY."
