On Friday, the S&P/ASX 200 Index (ASX: XJO) finished another very difficult week with a day in the red. The benchmark index fell a disappointing 1.9% to 6,574.7 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 sink again
The Australian share market looks set to start the week deep in the red. This follows another selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 82 points or 1.25% lower this morning. On Wall Street, the Dow Jones was down 1.6%, the S&P 500 dropped 1.7%, and the NASDAQ tumbled 1.8%.
Oil prices tumble
Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult start to the week after oil prices sank on Friday. According to Bloomberg, the WTI crude oil price was down 5.7% to US$78.74 a barrel and the Brent crude oil price dropped 4.75% to US$86.15 a barrel. Recession fears weighed heavily on prices.
Link takeover collapses
The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch today after the company confirmed that its takeover has collapsed. As there is no expectation that the outstanding conditions precedent for the $4.81 per share offer will be satisfied, the court declined to make orders approving the scheme and dismissed the proceedings.
Gold price drops
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week on Monday after the gold price tumbled. According to CNBC, the spot gold price was down 1.5% to US$1,655.6 an ounce on Friday night. This means the precious metal is now trading at a two-year low. Rising rates are lessening the appeal of the yield-less precious metal.
Miners on watch
It could be a bad start to the week for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares. On Wall Street, the mining giants' US listed shares sank deep into the red amid concerns over an impending global recession. BHP's shares dropped 4.5% and Rio Tinto's shares fell almost 6% during Friday night's session.
