On Thursday the S&P/ASX 200 index was out of form and dropped notably lower. The benchmark index fell 0.65% to 6,708.8 points.
Will the Australian share market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rise.
The S&P/ASX 200 index looks set to end the week on a positive note following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to rise 23 points or 0.35% at the open. In late trade on Wall Street the Dow Jones is up 0.8%, the S&P 500 is up 0.7%, and the Nasdaq is up 0.55%.
Trade deal close.
The catalyst for the strong gains on Wall Street was news that the U.S. is close to sealing a phase one trade deal with China. On Twitter President Trump said: "Getting VERY close to a BIG DEAL with China. They want it, and so do we!" This could give the shares of tech companies such as Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC) a boost today. Trade war concerns have weighed on their shares this week.
Oil prices rise.
Australian energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise after oil prices raced higher. According to Bloomberg, the WTI crude oil price rose 0.95% to US$59.31 a barrel and the Brent crude oil price climbed 1.05% to US$64.39 a barrel. The catalyst for this was trade deal optimism.
Gold price edges lower.
Positive trade talk developments could mean gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) trade lower on Friday. According to CNBC, the spot gold price edged 0.2% lower to US$1,472.3 an ounce after the U.S. said that a trade deal was close.
UK election.
Shares with exposure to the United Kingdom such as Pendal Group Ltd (ASX: PDL) and Virgin Money UK (ASX: VUK) could be on the move on Friday depending on the result of the UK election. Current prime minister, Boris Johnson, remains the frontrunner. If he wins then the United Kingdom is likely to leave the EU at the end of January.
