On Friday the S&P/ASX 200 index finished the week on a disappointing note following declines on Wall Street. The benchmark index fell 0.3% to 6,768.6 points.
Will the local market be able to bounce back on Monday? Here are five things to watch:
ASX 200 expected to open flat.
The S&P/ASX 200 index looks set to start the week on a subdued note following another heavy decline on Wall Street on Friday. According to the latest SPI futures, the ASX 200 index is poised to open the day flat this morning. On Wall Street the Dow Jones dropped 0.4% lower, the S&P 500 index fell 0.7%, and the Nasdaq tumbled 1.3% lower.
Tech shares on watch.
Australian tech shares such as Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) could come under pressure on Monday after their U.S. counterparts were sold off on Friday. The technology-focused Nasdaq index dropped 1.3% amid concerns that the US-China trade war could escalate following President Trump's comments last week.
Oil prices charge higher.
Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices bounced back from a selloff last week. According to Bloomberg, the WTI crude oil price rose 3.2% to US$55.66 a barrel and the Brent crude oil price climbed 1.4% to US$61.89 a barrel. Oil prices could continue their ascent on Monday after reports claimed that Iran has seized a foreign tanker in the Gulf carrying 700,000 litres of fuel.
Gold price finishes the week higher.
Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) shares will be on watch on Monday after the gold price held onto its gains. According to CNBC, the spot gold price finished the week at US$1,452.50 an ounce, meaning a gain of around 2% for the week.
BHP and Rio Tinto on watch.
The BHP Group Ltd (ASX: BHP) share price and the Rio Tinto Limited ASX: RIO) share price could be on the slide again today after their UK and US-listed shares tumbled lower on Friday. The mining giants' UK scrip fell 4.8% and 3% and their US scrip dropped 2% and 2.5% lower, respectively. Concerns over the trade war and iron ore prices appear to be behind the declines.
