On Friday the S&P/ASX 200 index finished a very positive week on a subdued note. The benchmark index fell 0.25% to 6,846 points.
Will the local market be able to bounce back on Monday? Here are five things to watch:
ASX expected to edge higher.
The S&P/ASX 200 index is poised to start the week on a mildly positive note. According to the latest SPI futures, the ASX 200 index is expected to rise 5 points or 0.1% at the open. This is despite a disappointing finish to the week on Wall Street which saw the Dow Jones fall 0.4%, the S&P 500 index drop 0.4%, and the Nasdaq tumble 0.45%.
Oil prices crash.
It looks set to be a poor start to the week for Santos Ltd (ASX: STO), Woodside Petroleum Limited (ASX: WPL), and the rest of Australia's energy producers. They could come under pressure today after oil prices crashed lower on Friday night. According to Bloomberg, the WTI crude oil price sank 5% to US$55.17 a barrel and the Brent crude oil price dropped 4.4% to US$60.49 a barrel. Trade war concerns, the resignation of Iraq's prime minister, and concerns over the OPEC+ meeting this week weighed on prices.
Tech shares on watch.
Altium Limited (ASX: ALU) and other ASX tech shares will be on watch on Monday after their US counterparts finished the week deep in the red. The technology-focused Nasdaq index tumbled 0.45% lower due to trade war concerns.
Gold price higher.
Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could push higher today after the gold price raced higher on Friday. According to CNBC, the spot gold price is up 0.8% to US$1,472.70 an ounce.
Miners on watch.
The shares of iron ore producers such as Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) could be on the slide today after trade war concerns weighed on commodity prices. The iron ore price finished the week with a 0.6% decline to US$87.25 a tonne. The Western Areas Ltd (ASX: WSA) share price could also be under pressure after nickel prices tumbled lower as well.
