On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell 1% to 7,221.7 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to fall again
The Australian share market looks set to start the week in the red following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 51 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 0.7%, and the Nasdaq tumbled 1.2%.
Oil prices mixed
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price fell 0.75% to US$91.07 a barrel and the Brent crude oil price rose 0.6% to US$93.54 a barrel. Oil prices recorded weekly declines amid optimism that Iranian sanctions will lift.
A2 Milk half year update
The A2 Milk Company Ltd (ASX: A2M) share price will be on watch this morning when the struggling infant formula company releases its half year results. According to CommSec, the market consensus estimate is for a net profit after tax of NZ$60 million. This will be down 50% from NZ$120 million during the prior corresponding period.
Gold price edges lower
Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday night. According to CNBC, the spot gold price fell 0.1% to US$1,889.8 an ounce. Despite this, the gold price added over 3% to its value over the five days thanks to increased demand for safe haven assets.
AGL takeover
The AGL Energy Limited (ASX: AGL) share price will be on watch today amid reports that the energy giant has received a takeover approach. Atlassian co-founder, Mike Cannon-Brookes, and Canadian infrastructure giant Brookfield are understood to have tabled an $8 billion or $7.50 per share offer to acquire the company. However, this is only a modest 4.7% premium to its last close price.
