On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index crashed 5% lower to 5,245.9 points.
Will the market bounce back on Monday? Here are five things to watch:
ASX 200 expected to edge lower.
The ASX 200 looks set to continue its slide on Monday. Current SPI futures are pointing to a 7 point or 0.1% decline at the open. This follows a poor end to the week on Wall Street. On Friday the Dow Jones fell 2.6%, the S&P 500 dropped 2.8%, and the Nasdaq index sank 3.2% lower. Tech giant Amazon was out of form and dropped 7% in response to its quarterly result
Westpac half year result.
The Westpac Banking Corp (ASX: WBC) share price will be on watch today when it releases its half year result. One of the main focuses for investors will be its interim dividend. Last month National Australia Bank Ltd. (ASX: NAB) declared a greatly reduced interim dividend and Australia and New Zealand Banking Group Ltd (ASX: ANZ) decided to defer its dividend. Westpac is widely expected to follow the lead of ANZ and not pay a dividend.
Oil prices mixed.
Energy producers including Santos Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the move today after a mixed session for oil prices on Friday night. According to Bloomberg, the WTI crude oil price jump 5% to US$19.78 a barrel and the Brent crude oil price edged 0.15% lower to US$26.44 a barrel.
Gold price rebounds.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) were out of form last week after the gold price came under pressure. However, Monday looks set to be better for them after the gold price rebounded on Friday night. According to CNBC, the spot gold price climbed 0.4% to US$1,700.90 an ounce after global equities were sold off.
Tencent buys 5% stake in Afterpay.
The Afterpay Ltd (ASX: APT) share price will be one to watch this morning after Chinese tech behemoth Tencent Holdings bought a 5% stake in the company. Tencent is the company behind the massively popular WeChat app. Afterpay co-founder Nick Molnar said: "We feel very privileged to welcome Tencent as a substantial shareholder in our business. Being able to attract a strategic investor of this calibre is extremely rewarding and is a testament to our team and the strength of our differentiated business model." Investors may be hoping that this could be the first step towards an expansion into the China market in the future.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
