Last week was one to forget for Australian investors. Global markets were sold off due to the coronavirus outbreak, leading to the S&P/ASX 200 index falling 9.8% to finish at 6441.2 points.
Will things be better next week? Here are five things to watch:
Wall Street falls again.
The S&P/ASX 200 looks set to extend its decline on Monday after Wall Street continued to slide on Friday night. The Dow Jones fell 1.4% and the S&P 500 dropped 0.8%. Positively, the Nasdaq index rebounded from a heavy early decline to finish flat. Current SPI futures are pointing to the S&P/ASX 200 index opening the week 40 points lower.
Reserve Bank meeting on Tuesday.
The Reserve Bank will be holding its second meeting of the year on Tuesday. Although there have been calls for the central bank to cut rates to support the economy and the market during the coronavirus crisis, the market doesn't believe a cut is coming just yet. The latest ASX 30 Day Interbank Cash Rate Futures are pointing to only an 11% probability of a rate cut to 0.5%.
TPG Telecom results.
The TPG Telecom Ltd (ASX: TPM) share price will be on watch on Thursday when the telco giant releases its half year results. According to a note out of Goldman Sachs, its analysts expect TPG Telecom to report a 1% increase in revenue to $1,243 million and a 41% decline in net profit after tax. The market will also be watching for any changes to its guidance. TPG Telecom expects BAU EBITDA of $735 million to $750 million in FY 2020.
Bega Cheese returns from its trading halt.
The Bega Cheese Ltd (ASX: BGA) share price is due to return from its trading halt on Monday. Last week it requested the halt and postponed the release of its half year results due to a delay in their finalisation. The company revealed that it has identified data errors which resulted in a misstatement that may require a prior year adjustment. One positive is that management appears confident it won't impact its FY 2020 guidance.
Shares going ex-dividend.
A number of popular ASX 200 shares are due to trade ex-dividend for their latest payouts next week. These include airline operator Qantas Airways Limited (ASX: QAN) on Monday, conglomerate Woolworths Group Ltd (ASX: WOW) on Wednesday, and mining giant BHP Group Ltd (ASX: BHP) on Thursday.
