On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher for a second day in a row. The benchmark index jumped 0.8% to 6,112.6 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 to crash lower.
It looks set to be a very disappointing end to the week for the ASX 200 following a terrible night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to crash 120 points or 2% lower at the open. On Wall Street the Dow Jones sank 2.8% lower, the S&P 500 dropped 3.5%, and the Nasdaq crashed 5% lower. Apple shares were a major drag, falling 8% overnight. This appears to have been driven by profit taking.
Tech shares could tumble.
It could be a difficult day of trade for ASX tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) following the Nasdaq’s sizeable decline. The local sector has a tendency to follow the lead of the tech-focused Nasdaq index. So with the Nasdaq falling 5% overnight, it doesn’t bode well for Appen and co.
Oil prices lower.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.5% to US$41.31 a barrel and the Brent crude oil price has dropped 0.9% to US$44.02 a barrel.
Gold price weakens.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price weakened despite the mini market crash on Wall Street. According to CNBC, the spot gold price fell 0.4% to US$1,937.30 an ounce overnight. Stronger than expected economic data is weighing on the precious metal.
Shares trading ex-dividend.
Another group of shares are going ex-dividend this morning. This could put further pressure on their shares on Friday. Trading ex-dividend this morning are financial technology company Bravura Solutions Ltd (ASX: BVS) and logistics solutions company WiseTech Global Ltd (ASX: WTC).
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More reading
- ASX 200 rises 0.8%, investors bet on SkyCity
- New to investing? 3 top ASX shares to kickstart your portfolio
- The Appen share price is down 20% in a week: Is it time to buy?
- The one type of ASX company that outperforms all others
- ASX 200 up 1%: Big four banks charge higher, SKYCITY impresses, Xero tumbles
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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