On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose to 0.5% to 7,522.9 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning. This follows a largely disappointing end to the week on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 edge lower, and the Nasdaq push 0.2% higher. Weak economic data in the US put pressure on stocks.
Oil prices fall
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a tough start to the week after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price is down 1% to US$69.29 a barrel and the Brent crude oil price has fallen 0.6% to US$72.61 a barrel.
Fortescue shares go ex-dividend
The Fortescue Metals Group Limited (ASX: FMG) share price is likely to fall deep into the red on Monday when it trades ex-dividend. The iron ore giant is paying shareholders a fully franked $2.11 per share on dividend 30 September. This is the equivalent of a 10% dividend yield, so expect a double digit decline for Fortescue's shares this morning.
Gold price storms higher
Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a strong start to the week after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 1.2% to US$1,833.7 an ounce. Weak US economic data eased tapering fears and boosted the gold price.
Quarterly rebalance
After the market close on Friday, S&P Dow Jones Indices announced changes to the ASX 200 at the next rebalance. According to the release, G8 Education Ltd (ASX: GEM) and Nuix Ltd (ASX: NXL) are two of four shares being dumped out of the ASX 200 on 20 September. Lifestyle Communities Limited (ASX: LIC) and Tyro Payments Ltd (ASX: TYR) are among the four shares replacing them in the illustrious index.
