On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a disappointing note. The benchmark index fell 1.1% to 7,393.9 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to start the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning. This follows a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 rise 0.1%, and the Nasdaq storm 0.6% higher.
Oil prices charge higher
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices charged higher on Friday. According to Bloomberg, the WTI crude oil price rose 2.1% to US$83.82 a barrel and the Brent crude oil price pushed 1.9% higher to US$86.06 a barrel. Oil prices rose despite speculation that China will release some of its reserves.
Tech shares on watch
It could be a good day for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) after their peers rebounded on Wall Street on Friday night. As the local tech sector tends to follow the Nasdaq's lead, its 0.6% gain bodes well for trade today. However, with the Block share price continuing its slide, the Afterpay Ltd (ASX: APT) share price may not fare as well as others.
Gold price falls
Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price dropped on Friday night. According to CNBC, the spot gold price fell 0.3% to US$1,787.40 an ounce. The gold price dropped amid rises in US bond yields and the US dollar.
Iron ore prices soften
BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be in focus today after a pullback in the iron ore price. According to Metal Bulletin, the benchmark iron ore price fell 0.9% to US$126.75 a tonne. Market sentiment is being weighed down by most mills finishing the restocking of iron ore at China's ports ahead of the upcoming Lunar New Year.
