On Friday the S&P/ASX 200 index finished the week on a positive note with a solid 0.6% gain to 6,716.1 points.
Will the local share market be able to build on this on Monday and start the week on a high? Here are five things to watch:
ASX 200 expected to slide
The Australian share market looks set to start the week on a subdued note following a disappointing end to the week on Wall Street. At the time of writing, SPI futures are pointing to a decline of 12 points or 0.2% at the open. In the United States the Dow Jones fell 0.25%, the S&P 500 dropped 0.5%, and the Nasdaq index tumbled 1.1% lower.
Tech shares could come under pressure
It looks like it could be a disappointing start to the week for Australian tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) after their U.S. counterparts sank lower on Friday. The technology-focused Nasdaq index dropped 1.1% after reports claimed that the United States is planning to limit or block investments in China.
Oil prices drop
Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the slide today after oil prices dropped lower at the end of the week. According to Bloomberg, the WTI crude oil price fell 0.9% to US$55.91 a barrel and the Brent crude oil price tumbled 1.3% to US$61.91 a barrel. The catalyst for this was claims by Iran that the United States had offered to remove sanctions.
Nufarm results
The Nufarm Limited (ASX: NUF) share price will be one to watch this morning when it hands in its full year results. The agricultural chemicals company is expected to release a disappointing result due to the negative impact of the droughts. So all eyes will be on its guidance, especially with the market looking for a strong rebound in FY 2020. Nufarm is the most shorted share on the ASX, so a better than expected result could cause a short squeeze and send its shares hurtling higher.
Gold price falls
It looks set to be a subdued start to the week for Australia's leading gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the spot gold price continued to tumble. According to CNBC, the spot gold price dropped a further 0.6% to US$1,506.40 an ounce.
