On Friday the S&P/ASX 200 index had a positive day and pushed 0.3% higher to 6,523.1 points.
Will the local share market be able to build on this on Monday? Here are five things to watch:
ASX 200 poised to crash lower.
It looks set to be a very disappointing start to the week for the Australian share market. Due to heavy declines on Wall Street on Friday because of trade war concerns, the latest SPI futures are pointing to the ASX 200 index opening 86 points or 1.3% lower this morning. Over in the United States the Dow Jones dropped 2.4%, the S&P 500 index sank 2.6%, and the Nasdaq fell a sizeable 3%.
Oil prices tumble.
The escalation of the trade war between the US and China weighed heavily on oil prices on Friday and could put pressure on the shares of Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) this morning. According to Bloomberg, the WTI crude oil price fell 2.1% to US$54.17 a barrel and the Brent crude oil price dropped 1% to US$59.34 a barrel.
Gold price charges higher.
One asset that was given a boost by trade war concerns was gold. This looks set to give gold producers such as Northern Star Resources Ltd (ASX: NST) and Regis Resources Limited (ASX: RRL) a major lift this morning. According to CNBC, the spot gold price surged 2% higher to US$1,537.6 an ounce on Friday.
Fortescue results.
The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch this morning when the iron ore producer releases its full year results. Thanks to the surge in iron ore prices this year, a bumper profit result is expected from Fortescue. According to CommSec, the market is looking for a net profit after tax of US$2.44 billion and a final 17.5 U.S. cents per share dividend.
Tech shares could come under pressure.
A very heavy decline on Wall Street's technology-focused Nasdaq index could put pressure on locally listed tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) on Monday. The Nasdaq index dropped a sizeable 3% amid concerns over the escalating trade war between the United States and China.
