On Friday the S&P/ASX 200 index ended a very disappointing week with another sizeable decline. The benchmark index fell 3.25% to finish the week at 6,441.2 points.
Will the local share market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to fall.
The S&P/ASX 200 index looks set to start the week in the red. According to the latest SPI futures, the ASX 200 is poised to tumble 0.6% or 40 points at the open. This follows a poor end to the week on Wall Street which saw the Dow Jones drop 1.4%, the S&P 500 index fall 0.8%, and the Nasdaq index trade flat.
Oil prices continue to slide.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could tumble lower on Monday after oil prices fell heavily on Friday night. According to Bloomberg, the WTI crude oil price fell 4.9% to US$44.76 a barrel and the Brent crude oil price dropped 4% to US$49.67 a barrel. Coronavirus concerns continue to weigh on prices.
Gold price sinks.
Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after the gold price crashed lower on Friday. According to CNBC, the spot gold price sank 4.6% lower to US$1,566.70 an ounce. Even the precious metal is now being sold off by investors amid concerns over the coronavirus outbreak. Traders appear to be moving to cash.
Bega Cheese returns from its trading halt.
The Bega Cheese Ltd (ASX: BGA) share price will be on watch this morning when it returns from its trading halt. Last week it requested the halt and postponed the release of its half year results due to a delay in their finalisation. The company advised that this was due to the identification of data errors which resulted in a misstatement that may require a prior year adjustment. One positive is that management expects to reaffirm its FY 2020 guidance.
Shares going ex-dividend.
A number of shares will be trading ex-dividend on Monday and could trade lower. These include the shares of debt collector Credit Corp Group Limited (ASX: CCP), iron ore producer Fortescue Metals Group Limited (ASX: FMG), energy retailer Origin Energy Ltd (ASX: ORG), and airline operator Qantas Airways Limited (ASX: QAN).
