On Friday the S&P/ASX 200 index ended the week with a small gain. The benchmark index rose 0.1% to finish it at 7,017.2 points.
Will the local share market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to sink lower.
The S&P/ASX 200 index looks set to start the week on a very disappointing note. According to the latest SPI futures, the ASX 200 is poised to crash 119 points or 1.7% lower at the open. This follows a bad end to the week on Wall Street which saw the Dow Jones drop 2.1%, the S&P 500 index fall 1.8%, and the Nasdaq index tumble 1.6%.
Coronavirus concerns escalate.
Global markets were sold off on Friday after coronavirus concerns continued to escalate. With more and more cases being reported, Qantas Airways Limited (ASX: QAN) has followed the lead of many of its peers by announcing plans to stop all flights to and from the China mainland.
Oil prices drops lower.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could drop lower on Monday after oil prices weakened again. According to Bloomberg, the WTI crude oil price fell 1.1% to US$51.56 a barrel and the Brent crude oil price dropped 1.2% to US$56.62 a barrel.
Gold price softens.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price softened despite the global market turmoil. According to CNBC, the spot gold price fell 0.1% to US$1,587.90 an ounce on Friday night.
ResMed rated as a buy.
The ResMed Inc. (ASX: RMD) share price could still go higher from here according to analysts at Goldman Sachs. According to a note out of the investment bank, its analysts have retained their buy rating and lifted the price target on its shares to $27.50. Goldman was impressed with its first half performance and appears confident its strong form can continue.
