On Friday the S&P/ASX 200 Index (ASX: XJO) was sold off amid concerns over a new strain of COVID-19. The benchmark index sank 1.7% to finish the week at 7,279.3 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to sink again
The Australian share market looks set to start the new week the same way as it ended the last one. According to the latest SPI futures, the ASX 200 is expected to open the day 104 points or 1.4% lower this morning. This follows a selloff on Wall Street on Friday which saw the Dow Jones fall 2.5%, the S&P 500 drop 2.3%, and the Nasdaq tumble 2.2%. The Dow had its worst day of the year.
Oil prices crash
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are likely to start the week deep in the red after oil prices crashed on Friday night. According to Bloomberg, the WTI crude oil price sank 13.05% to US$68.15 a barrel and the Brent crude oil price has dropped 11.55% to US$72.72 a barrel. Oil had its worst day of the year amid concerns the new omicron strain of COVID-19 could hit demand just as supply increases.
ANZ shares rated as a buy
The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could be in the buy zone according to the team at Bell Potter. This morning the broker retained its buy rating and $31.00 price target on the banking giant's shares. Bell Potter notes that there are significant opportunities from decarbonising the economy and the bank is well positioned to facilitate to net zero emissions.
Gold price rises
Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a positive note after the market selloff boosted safe haven assets. According to CNBC, the spot gold price rose 0.45% to US$1,792.30 an ounce.
Iron ore prices fall
BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could start the week in the red after iron ore prices tumbled on Friday night. According to Metal Bulletin, the benchmark 62% fines fell US$5.68 or 5.5% to US$96.67 per tonne. Things were even worse for low grade iron ore, which dropped US$5.31 or 7.1% to US$69.60 per tonne.
