On Friday the S&P/ASX 200 index had a strong finish to the week, rising 0.6% to 6,365.3 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX futures pointing higher.
The Australian share market is poised to open the week higher on Monday despite declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% higher this morning. On Wall Street the Dow Jones dropped 0.4%, the S&P 500 fell 0.6%, and the Nasdaq index tumbled 1% lower after trade talks between the U.S. and China stalled.
Election result.
The LNP coalition has surprised everyone by winning the Federal election. This could have an impact on the Australian share market this morning and see investors rotating out of shares that were set to benefit from a Labor government. Conversely, with franking credits now safe, shares with fully franked dividends may be in demand again. As could private health insurers such as Medibank Private Ltd (ASX: MPL) which had been threatened with premium increase caps.
Oil prices drop.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could start the week on a disappointing note after oil prices finished the week with a day in the red. According to Bloomberg, the WTI crude oil price fell 0.2% to US$62.76 a barrel and the Brent crude oil price dropped 0.55% to US$72.21 a barrel.
Gold price sinks lower.
Unfortunately for Resolute Mining Ltd (ASX: RSG) and Saracen Mineral Holdings Limited (ASX: SAR), a strong U.S. dollar has put pressure on the gold price and sent it trading close to a two-week low. According to CNBC, on Friday the spot gold price dropped almost 1% to US$1,275.7 an ounce.
Tech shares on watch.
Although SPI futures are currently pointing higher, all eyes will be on Altium Limited (ASX: ALU), Appen Ltd (ASX: APX), and the rest of the tech sector after their U.S. peers tumbled lower on Friday following news that trade war talks between the U.S. and China have stalled.
