On Thursday the S&P/ASX 200 index started the month on a disappointing note following heavy declines on Wall Street. The benchmark index fell 0.35% to 6,788.9 points.
Will the local market be able to bounce back on Friday? Here are five things to watch:
ASX 200 poised to slide lower.
It looks set to be another day in the red for the S&P/ASX 200 index on Friday. According to the latest SPI futures, the ASX 200 index is expected to open the day 10 points or 0.15% lower this morning. This follows a disappointing night of trade on Wall Street which saw the Dow Jones give back strong early gains to sink 1.05% lower, the S&P 500 index drop 0.9%, and the Nasdaq fall 0.8%.
Trump announces new tariffs.
Wall Street came under pressure on Thursday after President Trump announced new tariffs on Chinese imports. On Twitter the president revealed plans to impose 10% tariffs on another US$300 billion of Chinese goods from September 1, reigniting trade war and global growth concerns.
Rio Tinto result.
The Rio Tinto Limited (ASX: RIO) share price could come under pressure today following the release of its half year results after the market close on Thursday. Although Rio Tinto delivered a bumper profit and announced US$2.5 billion in shareholder returns, it appears to have fallen a touch short of expectations. In London the mining giant's shares fell around 3.5%.
Oil prices crash lower.
It looks set to be a very disappointing end to the week for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price sank 7% to US$54.48 a barrel and the Brent crude oil price tumbled 6.15% to US$61.05 a barrel after President Trump's comments.
Gold price surges higher.
Conversely, it looks set to be a very positive finish to the week for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price launched higher. According to CNBC, the spot gold price jumped 1.3% to US$1,456.60 an ounce after President Trump announced new tariffs on Chinese imports.
