On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and sunk notably lower. The benchmark index fell a disappointing 3.05% to 5,960.6 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to extend its decline.
It looks set to be another bleak day of trade for the ASX 200 after Wall Street crashed lower overnight. According to the latest SPI futures, the benchmark index is expected to sink 185 points or 3.1% lower at the open. On Wall Street the Dow Jones dropped 6.9%, the S&P 500 fell 5.9%, and the Nasdaq sank 5.3%.
Wall Street sell off.
U.S. stocks have just had their worst day in three months after a spike in coronavirus cases in the United States led to concerns over a second wave. Very few shares were spared during last night’s selloff. Airlines, travel shares, banks, and retailers were sold off. This could put further pressure on the likes of Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Webjet Limited (ASX: WEB) today.
Oil prices tumble lower.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under significant pressure after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price dropped 9% to US$36.05 a barrel and the Brent crude oil price crashed 8.5% to US$38.17 a barrel.
Gold price pushes higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could be pushing higher today after the market crash sent the gold price jumping higher. According to CNBC, the spot gold price rose 0.85% to US$1,735.20 an ounce.
JB Hi-Fi shares given neutral rating.
The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued according to analysts at Goldman Sachs. Although the broker was impressed with the retailer’s trading update on Thursday, it has only lifted its price target to $39.30. So, with its shares closing the day at $40.22, Goldman has held firm with its neutral rating.
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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 Webjet Ltd. 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.
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