Last week the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index lost 0.6% over the five days to end it at 6,073.8 points.
Earnings season may draw to a close on Monday, but that doesn't mean there won't be another busy week ahead.
Here are five things that I think investors should be watching next week:
ASX futures pointing lower.
The ASX 200 looks set to start the week as it finished it. According to the latest SPI futures, the benchmark index is poised to open the week a disappointing 40 points lower. This is despite Wall Street finishing the week strongly on Friday. The Dow Jones climbed 0.6%, the S&P 500 rose 0.8%, and the Nasdaq pushed 0.6% higher.
IOOF results and potential major acquisition.
The IOOF Holdings Limited (ASX: IFL) share price will be in focus on Monday when the financial services company announces its full year results. According to CommSec, the market is expecting a net profit after tax of $132.6 million. The company is also planning to announce a potential significant transaction. There is speculation the company could be interested in acquiring AMP Limited (ASX: AMP).
Reserve Bank meeting.
The Reserve Bank of Australia will be meeting on Tuesday to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 56% probability of a rate cut to zero. While this means a cut is possible, it appears unlikely. The Westpac Banking Corp (ASX: WBC) economic team expects the cash rate to stay on hold at 0.25%.
Fortescue to trade ex-dividend.
The Fortescue Metals Group Limited (ASX: FMG) share price is likely to tumble lower on Monday when its shares trade ex-dividend. The iron ore producer is paying shareholders a final fully franked $1.00 per share dividend. This equates to a 5.3% dividend yield, which could mean its shares fall by a similar margin.
Other shares trading ex-dividend.
Fortescue isn't the only share trading ex-dividend next week. On Monday there's Ansell Limited (ASX: ANN), on Tuesday there are Super Retail Group Ltd (ASX: SUN) and Woolworths Group Ltd (ASX: WOW), on Wednesday there is Medibank Private Ltd (ASX: MPL), on Thursday there is BHP Group Ltd (ASX: BHP), and on Friday there is Bravura Solutions Ltd (ASX: BVS).
