On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a disappointing note. The benchmark index fell 5.3% to 4,842.4 points.
Will the local share market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rise.
The ASX 200 looks set to push higher on Monday despite a disappointing end to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 6 points or 0.1% higher. On Wall Street the Dow Jones dropped 4.1%, the S&P 500 fell 3.4%, and the Nasdaq index tumbled 3.8% lower.
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 4.8% to US$21.51 a barrel and the Brent crude oil dropped 5.4% to US$24.93 a barrel. Oil prices came under pressure after demand fears overshadowed stimulus hopes.
Gold price slides lower.
Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be heading lower today after the gold price softened. According to CNBC, the spot gold price fell 0.4% on Friday to US$1,654 an ounce. However, this didn't stop the precious metal from recording its biggest weekly gain in over a decade.
Afterpay upgraded to a buy rating.
The Afterpay Ltd (ASX: APT) share price could be on the move today after a positive broker note out of Goldman Sachs. According to the note, Goldman has upgraded the payments company's shares to a buy rating with a $25.10 price target. It believes the sharp pullback in its share price is a buying opportunity and expects it to come out of the current crisis in an even stronger position versus competitors.
Flight Centre and Webjet due to return.
Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) shares are due to return from their suspensions on Monday. Both embattled travel agents are currently aiming to raise funds in order to boost their liquidity during these difficult trading conditions. However, there is speculation that both companies are finding it hard to strike a deal. This could mean they request extensions to these suspensions.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
