On Thursday the S&P/ASX 200 index returned to form and pushed notably higher. The benchmark index climbed 1.1% to 6,395.7 points.
Will the local share market be able to build on this on Friday? Here are five things to watch:
ASX 200 set to sink lower.
The S&P/ASX 200 index looks set to give back yesterday's gains and more on Friday. According to the latest SPI futures, the ASX 200 is poised to fall 134 points or 2.1% at the open. This follows a very disappointing night on Wall Street which in late trade sees the Dow Jones down 3.7%, the S&P 500 index 3.6% lower, and the Nasdaq index trading 3.1% lower.
Coronavirus concerns weigh on market.
Global markets were sold off again overnight due to escalating fears about the coronavirus disrupting the global economy. This follows news of countries around the world extending quarantines and travel restrictions. According to CNBC, over in the United States, California declared a state of emergency after a coronavirus-related death and 53 confirmed cases in the state. The number of infections doubled in New York overnight to 22 after the state ramped up its testing.
Oil prices sink despite OPEC cuts.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) may come under pressure today after oil prices sank lower despite OPEC announcing massive production cut plans. According to Bloomberg, the WTI crude oil price has fallen 2.3% to US$45.72 a barrel and the Brent crude oil price has dropped 2.5% to US$49.84 a barrel. The cartel has decided to cut production by 1.5 million barrels per day through the second quarter of the year.
Gold price jumps.
It looks set to be a positive day of trade for Australia's leading gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). According to CNBC, the market volatility has sent the spot gold price storming 1.7% higher to US$1,670.40 an ounce.
Shares going ex-dividend.
Another group of ASX 200 shares are due to trade ex-dividend this morning and could drop lower. These include regional bank Bendigo and Adelaide Bank Ltd (ASX: BEN), gold miner Northern Star, and embattled logistics solutions company WiseTech Global Ltd (ASX: WTC).
