On Friday the S&P/ASX 200 Index (ASX: XJO) finished another tough week on a positive note. The benchmark index climbed 0.7% to 4,816.6 points.
Will the local share market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to fall.
The ASX 200 looks set to slide lower on Monday after a disappointing end to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 87 points or 1.8% lower. On Wall Street the Dow Jones fell 4.5%, the S&P 500 index dropped 4.3%, and the Nasdaq index sank 3.8%.
Oil prices sink again.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure on Monday after oil prices sank lower on Friday night. According to Bloomberg, the WTI crude oil price fell 12.7% to US$22.63 a barrel and the Brent crude oil dropped 5.2% to US$26.98 a barrel. WTI and Brent crude oil have both collapsed ~40% in the past two weeks since the breakdown of talks between OPEC and its allies.
Gold price rises.
Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be on the rise on the ASX 200 today after increasing demand for safe haven assets sent the gold price higher. According to CNBC, the spot gold price climbed 0.4% on Friday to US$1,488.10 an ounce.
Premier Investments rated as neutral.
The Premier Investments Limited (ASX: PMV) share price was a very strong performer on Friday after the release of an impressive half year update. According to a note out of Goldman Sachs, its shares could still go higher from here. Although they have slapped a neutral rating on them, the broker's price target of $13.60 implies potential upside of 14% excluding dividends.
AP Eagers reduces dividend.
The AP Eagers Ltd (ASX: APE) share price will be one to watch on the ASX 200 this morning. After the market close on Friday the auto retailer announced that it would be halving its upcoming final dividend. Instead of paying 22.5 cents per share, it will now pay shareholders 11.25 cents per share. The AP Eagers board believes that it is prudent to ensure that cash is preserved until the uncertainties presently disrupting the market are better understood.
