The S&P/ASX 200 Index (ASX: XJO) rocketed 4.42% higher on Friday but ASX 200 shares are still stuck in a bear market. The grip of coronavirus has disrupted the global economy and sent investors fleeing for cover.
Last week I was watching Coles Group Ltd (ASX: COL), Fortescue Metals Group Limited (ASX: FMG) and Westpac Banking Corp (ASX: WBC) shares.
Westpac shares tumbled 15.13% last week alongside the other ASX 200 banking shares. The recent RBA rate cut and concerns over a rise in default rates spooked investors. As expected, the Fortescue Metals share price jumped 3.44% as one of a few gainers last week as signs of stabilisation from China trickled through. Coles shares were another to climb higher last week, including an 8.74% surge on Friday, with all of this panic buying potentially helping the retailer's bottom line.
Check out which 3 ASX 200 shares I'm watching as we gear up for another volatile week in Aussie shares.
Webjet Limited (ASX: WEB)
The Webjet share price has been hammered lower in recent weeks as coronavirus concerns have gripped the market. The travel and tourism industries have been arguably the hardest hit from the global pandemic. Shares in ASX 200 competitor Flight Centre Travel Group Ltd (ASX: FLT) are now down 52% since the start of the year after announcing the closure of 100 stores across Australia.
While there's been no announcement from Webjet, I'd keep an eye on its shares as the COVID-19 response takes shape.
Commonwealth Bank of Australia Ltd (ASX: CBA)
The CommBank share price has crashed lower in line with the rest of the big four. If the spread of COVID-19 is as big as anticipated, it could be a trigger for a recession here in Australia. Should that be the case, a number of highly-leveraged households and businesses could default on their loans. When combined with an RBA rate cut, the ASX 200 banking shares could see their profit margins squeezed in 2020.
I'll be watching CBA shares to see how the government's stimulus and monetary policy actions could influence its value.
Woolworths Group Ltd (ASX: WOW)
The Woolworths share price is definitely one to watch this week. Shares in the ASX 200 supermarket chain did surge 6.74% higher on Friday. However, I think there's more volatility on the way for Woolworths shares. If we see a shutdown like Spain or France, that could put real pressure on Woolworths' supply chain.
While sales are likely to see a short-term spike from the buying, who knows what the long-term implications may be. I'll be watching Woolworth closely this week to see which way investors are leaning on this ASX 200 share.
