On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a disappointing note. The benchmark index fell 0.6% to 6,642.6 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX futures pointing slightly lower.
It looks set to be a subdued start to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is poised to open the week a single point lower this morning. This follows a mixed end to the week on Wall Street. On Friday night the Dow Jones rose 0.15%, the S&P 500 fell 0.15%, and the Nasdaq dropped 0.2%.
ASX 200 new additions.
S&P Dow Jones Indices has announced its quarterly rebalance of the S&P/ASX Indices. The ASX 200 will be welcoming online retailer Kogan.com Ltd (ASX: KGN) and plumbing parts company Reece Ltd (ASX: REH) at the open of trading on December 21. Heading out of the index are three shares, due to the index currently having 201 shares following a demerger. These are Avita Therapeutics Inc (ASX: AVH), Cooper Energy Ltd (ASX: COE), and Western Areas Ltd (ASX: WSA).
Oil prices soften.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices finished the week in the red. According to Bloomberg, the WTI crude oil price fell 0.45% to US$46.57 a barrel and the Brent crude oil price dropped 0.55% to US$49.97 a barrel. Despite this, oil prices were able to record their sixth successive weekly gain.
Gold price rises.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the spot gold price pushed higher on Friday. According to CNBC, the spot gold price rose 0.35% lower to US$1,843.60 an ounce. COVID-19 stimulus optimism in the US lifted the precious metal.
US approves Pfizer COVID-19 vaccine.
On Friday night the US FDA gave its authorisation for the emergency use of Pfizer's COVID-19 vaccine. According to CNBC, the FDA's emergency use authorisation will allow the federal government's distribution of the potentially lifesaving vaccine across the country immediately. The government has already distributed 2.9 million doses of the vaccine, with the first jabs expected later today.
