On Friday the S&P/ASX 200 index finished the week on a positive note. It rose 0.5% to close it at 6,751.3 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX expected to drop.
The Australian share market looks set to start the week on a subdued note following a disappointing end to the week on Wall Street. According to the latest SPI futures, the ASX 200 index is poised to open the day 0.2% or 12 points lower this morning. On Wall Street the Dow Jones fell 0.15%, the S&P 500 dropped 0.2%, and the Nasdaq edged 0.1% after strong U.S. jobs data dampened hopes of a rate cut by the Federal Reserve.
Oil prices higher.
Australian energy producers Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be on the rise on Monday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price climbed 0.3% to US$57.51 a barrel and the Brent crude oil price jumped 1.5% to US$64.23 a barrel.
Gold price sinks.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could come under pressure today after the strong U.S. jobs data put pressure on the gold price. According to CNBC, the spot gold price dropped 1.5% to US$1,400.10 an ounce.
BHP, Fortescue, and Rio Tinto to sink lower.
The shares of BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could be heading into the red today after iron ore prices crashed lower late on Friday. Iron ore prices came under pressure after a Chinese official revealed plans to crackdown on high prices.
ANZ job data.
Later today the latest Australia and New Zealand Banking Group (ASX: ANZ) Job Advertisements data will be released. The market will be looking for a sizeable rebound after job advertisements in May fell 8.4% month on month. Further poor data could put more pressure on the Reserve Bank to cut rates again.
