The S&P/ASX 200 index was out of form on Thursday and tumbled notably lower. The benchmark index ended the day 0.6% lower at 7,088 points.
Will the local share market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rebound.
The S&P/ASX 200 index looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to rise 20 points or 0.3% at the open. This follows a mixed night of trade on Wall Street. In late trade the Dow Jones is down 0.05%, the S&P 500 is up 0.1%, and the Nasdaq has climbed 0.2%.
Wesfarmers defers lithium project decision.
After the market close on Thursday, Wesfarmers Ltd (ASX: WES) announced that it has completed the definitive feasibility study (DFS) of the Mt Holland lithium project. Following the completion of the DFS, a final investment decision on the Western Australia-based project has been deferred. This is to enable additional actions to enhance the long-term value of the project. A decision is now expected to be made in the first quarter of 2021.
Oil prices sink again.
It looks set to be a disappointing end to the week for energy shares such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices continued to tumble lower. According to Bloomberg, the WTI crude oil price is down a further 2.2% to US$55.51 a barrel and the Brent crude oil price has dropped 2% to US$61.96 a barrel. Oil prices have dropped to 11-week lows amid concerns over China's slowing economic growth.
Gold price higher.
Gold miners Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,562.70 an ounce after coronavirus fears heightened and led to an increase in demand for safe haven assets.
Macquarie short selling investigation.
The Macquarie Group Ltd (ASX: MQG) share price could be on the move today after German authorities designated 60 current and former Macquarie staff as suspects in relation to historical short selling-related activities. One suspect is the company's CEO Shemara Wikramanayake.
