On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished the week with a day in the red. The benchmark index ended with a 1.05% decline, bringing its weekly decline to 1.4%.
Will the local market be able to bounce back on Monday? Here are five things to watch:
ASX futures pointing lower.
According to the latest SPI futures, the ASX 200 is expected to open the day notably lower on Monday. Current SPI futures are pointing to a decline of 0.6% or 32 points this morning. This follows a selloff on Wall Street on Friday which saw the Dow Jones fall 2%, the S&P 500 drop 1.9%, and the Nasdaq tumble 2.3%.
Tech shares likely to come under pressure.
With the Nasdaq falling 2.3% and current Nasdaq futures pointing to a similarly sharp decline on Monday night, Australian tech shares including Afterpay Touch Group Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) could come under significant pressure on the ASX on Monday. Wall Street was sold off after weaker than expected data out of China and Europe raised concerns of a global economic slowdown.
Oil prices give back gains.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure again on Monday after oil prices tumbled lower on Friday. According to Bloomberg, the WTI crude oil price fell 2.6% to US$51.20 a barrel and the Brent crude oil price dropped 1.9% to US$60.28 a barrel. Oil prices fell after weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.
BHP special dividend.
In November BHP Group Ltd (ASX: BHP) announced plans to return US$10.4 billion to its shareholders through the combination of an off-market buy-back and a special dividend. Details of this special dividend will be revealed this morning.
Incitec Pivot dividend being paid.
This manufacturer and distributor of industrial explosives, industrial chemicals and fertilisers to the agriculture and mining industries will be paying its dividend on Monday. Eligible Incitec Pivot Ltd (ASX: IPL) shareholders will receive a partially franked 6.2 cents per share final dividend later today.
