On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and dropped lower. The benchmark index fell 0.7% to 6,636.4 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to drop lower.
It looks set to be a subdued end to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is expected to fall 16 points or 0.25% at the open. This follows a weak night of trade in Europe which saw the DAX down slightly, the FTSE down 0.45%, and the CAC down 0.1%. Wall Street was closed for Thanksgiving.
Tech shares on watch.
Although the market is expected to drop lower, a rise on the tech-focused Nasdaq index on Wednesday night appears to have given global tech shares a boost after several weeks of declines. This could mean tech shares such as the likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) finish the week on a positive note today.
Oil prices pull-back.
Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) may end the week in the red after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.6% to US$44.99 a barrel and the Brent crude oil price has fallen 1.8% to US$47.73 a barrel. Weak U.S. jobs data and COVID concerns weighed on prices.
Gold price pushes higher.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) will be in focus today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.2% to US$1,814.20 an ounce. Weak economic data and criticism of the AstraZeneca vaccine gave the precious metal a boost.
Bega Cheese's major acquisition.
The Bega Cheese Ltd (ASX: BGA) share price could return from its trading halt this morning. It halted its shares to launch an underwritten entitlement offer and placement to raise $401 million. The proceeds will be used to partly fund the acquisition of Lion Dairy & Drinks for $534 million. Lion Dairy & Drinks is the company behind a wide range of brands such as Dare, Farmers Union, Juice Brothers, Pura, and Yoplait. Management expects the acquisition to be double digit earnings per share accretive in FY 2022.
