On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a very difficult week with another day in the red. The benchmark index fell 1.5% to 6,739.1 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to edge lower
The Australian share market looks set to start the week in a subdued fashion. This follows a poor finish to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points lower this morning. On Wall Street, the Dow Jones was down 0.45%, the S&P 500 dropped 0.7%, and the NASDAQ tumbled 0.9%.
Oil prices rise
Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a better start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price was up slightly to US$85.11 a barrel and the Brent crude oil price rose 0.55% to US$91.35 a barrel. This wasn't enough to prevent a small weekly decline due to demand concerns.
ASX 200 rebalance
Today is quarterly rebalance day. This means a number of shares such as Life360 Inc (ASX: 360) and Zip Co Ltd (ASX: ZIP) will be kicked out of the ASX 200 index this morning. This could put a bit of pressure on their shares if index funds have not yet sold down their holdings. Lovisa Holdings Ltd (ASX: LOV) is one of the shares replacing them and joining the benchmark index today following the rebalance.
Gold price rises
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week on Monday after the gold price rose on Friday night. According to CNBC, the spot gold price was up 0.4% to US$1,683.5 an ounce. However, this wasn't enough to stop the precious metal from recording a sizeable weekly decline amid rate hike concerns.
Iron ore price falls
It could be a tough start to the week for BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares after the iron ore price dropped on Friday night. According to Metal Bulletin, the spot iron ore price has fallen 2.6% to US$98.45 a tonne.
