On Friday the S&P/ASX 200 Index (ASX: XJO) ended a positive week with a disappointing daily decline. The benchmark index dropped 0.55% to 6,176.8 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rise.
The Australian share market looks set to start the week in a positive fashion on Monday. According to the latest SPI futures, the ASX 200 is expected to open the week 39 points or 0.6% higher. This follows a reasonably positive end to the week on Wall Street. On Friday night the Dow Jones rose 0.4%, the S&P 500 edged higher, and the Nasdaq dropped 0.35% lower. Wall Street was given a boost by stronger than expected U.S. retail sales data.
Gold price edges lower.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after a subdued finish to the week for the gold price. According to CNBC, the spot gold price dropped 0.1% to US$1,906.40 an ounce on Friday night. This meant the precious metal recorded a small weekly decline.
Telstra iPhone 12 plans.
The Telstra Corporation Ltd (ASX: TLS) share price will be in focus today following the release of its iPhone 12 plans on Friday night. The telco giant was the most aggressive with its plans, discounting prices notably more than expected. Goldman Sachs commented: “The key promotion was from Telstra, who launched a very aggressive $50/m discount on its XL plan ($65/m, down from $115) as it looks to be making an aggressive play for ‘premium‘ subscribers, as it looks to leverage its superior 5G network (i.e. 40% coverage currently).”
Oil prices drop lower.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could trade lower today after oil prices softened on Friday night. According to Bloomberg, the WTI crude oil price fell 0.2% to US$40.88 a barrel and the Brent crude oil price dropped 0.5% to US$42.93 a barrel. Rising COVID-19 cases weighed on prices on Friday, but couldn’t stop oil from recording its second consecutive week of gains.
Tech shares on watch.
Tech shares such as Appen Ltd (ASX: APX) and Zip Co Limited (ASX: Z1P) will be on watch today after a poor end to the week by their U.S. counterparts on Wall Street’s tech heavy Nasdaq index. It fell 0.35% on Friday night, compared to a 0.4% gain by the Dow Jones. Last week the S&P/ASX All Technology Index (ASX: XTX) recorded a solid 3.7% gain.
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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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen 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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