On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a tough week with another red day. The benchmark index dropped 0.25% to 6,828.7 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks likely to start the week in a similar style to how it ended the last one. This follows a disappointing end to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% lower this morning. On Wall Street, the Dow Jones was down 1.1%, the S&P 500 also dropped 1.1%, and the NASDAQ tumbled 1.3% lower. A solid US jobs report failed to ease concerns that the US Federal Reserve would keep aggressively hiking interest rates to fight inflation.
Oil prices rise
Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price was up 0.3% to US$86.87 a barrel and the Brent crude oil price rose 0.7% to US$93.02 a barrel. There's speculation that OPEC could announce production cuts this week to boost prices.
ASX 200 rebalance
The Zip Co Ltd (ASX: ZIP) share price could come under pressure today after S&P Dow Jones Indices announced that it would be dumping the buy now pay later provider out of the ASX 200 index at the next rebalance. Other shares leaving the index include the beleaguered AVZ Minerals Ltd (ASX: AVZ), location technology company Life360 Inc (ASX: 360), and sports betting company Pointsbet Holdings Ltd (ASX: PBH).
Gold price rises
A strong US jobs report could mean gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have a positive start to the week on Monday. According to CNBC, the spot gold price was up 0.8% to US$1,722.6 an ounce on Friday night. The aforementioned jobs report led to the US dollar weakening and boosting gold.
Fortescue shares go ex-dividend
The Fortescue Metals Group Limited (ASX: FMG) share price is likely to tumble deep into the red on Monday. That's because this morning the iron ore giant's shares will be trading ex-dividend for its final dividend of $1.21 per share. Based on the current Fortescue share price, this dividend alone equates to a massive 7% dividend yield. Its shares could fall in line with this yield today.
