On Friday the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed notably lower. The benchmark index fell almost 3.1% to 5,925.5 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 to drop lower gain.
It looks set to be another disappointing day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 36 points or 0.6% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 drop 0.8%, and the Nasdaq index tumble 1.3% lower.
Oil prices crash lower.
It could be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices crashed lower on Friday night. According to Bloomberg, the WTI crude oil price fell 3.9% to US$39.77 a barrel and the Brent crude oil price dropped 3.2% to US$42.66 a barrel. Concerns over global oil demand weighed heavily on prices.
DEXUS looking at AMP fund.
The DEXUS Property Group (ASX: DXS) share price could be one to watch this morning. There are reports that the property company is looking to snare the rights to a big Australian investment fund operated by AMP Limited (ASX: AMP). The AFR understands that DEXUS is aiming to merge one of its own funds with the $4.5 billion AMP Capital Diversified Property Fund. The latter owns stakes in the Pacific Fair shopping centre, the Macquarie Centre, and the Quay Quarter.
Shares going ex-dividend.
Another group of shares will be trading ex-dividend this morning and could drop lower. Two highlights today are stock exchange operator ASX Ltd (ASX: ASX), which goes ex-dividend for its 122.5 cents per share dividend, and healthcare company Sonic Healthcare Limited (ASX: SHL) for its 51 cents per share dividend. They are joined by dairy company Bega Cheese Ltd (ASX: BGA) and financial services company IOOF Holdings Limited (ASX: IFL).
Gold price softens.
The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price softened. According to CNBC, the spot gold price fell 0.2% to US$1,934.30 an ounce on Friday night. A strong U.S. jobs report boosted the U.S. dollar and weighed on the gold price.
