On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and dropped lower. The benchmark index fell 0.7% to 6,636.4 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to drop lower.
It looks set to be a subdued end to the week for the Australian share market. According to the latest SPI futures, the ASX 200 is expected to fall 16 points or 0.25% at the open. This follows a weak night on Wall Street which in late trade sees the Dow Jones down 0.6%, the S&P 500 down 0.2%, and the Nasdaq up 0.5%.
Tech shares on watch.
Although the market is expected to drop lower, another rise on the tech-focused Nasdaq index could be good news for local tech shares. This could mean tech shares such as the likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) finish the week on a positive note today.
Oil prices pull-back.
Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) may end the week in the red after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.6% to US$44.99 a barrel and the Brent crude oil price has fallen 1.8% to US$47.73 a barrel. Weak U.S. jobs data and COVID concerns weighed on prices.
Gold price pushes higher.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) will be in focus today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.2% to US$1,814.20 an ounce. Weak economic data and criticism of the AstraZeneca vaccine gave the precious metal a boost.
Bega Cheese’s major acquisition.
The Bega Cheese Ltd (ASX: BGA) share price could return from its trading halt this morning. It halted its shares to launch an underwritten entitlement offer and placement to raise $401 million. The proceeds will be used to partly fund the acquisition of Lion Dairy & Drinks for $534 million. Lion Dairy & Drinks is the company behind a wide range of brands such as Dare, Farmers Union, Juice Brothers, Pura, and Yoplait. Management expects the acquisition to be double digit earnings per share accretive in FY 2022.
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More reading
- ASX 200 falls on Thursday
- ASX 200 flat: Bega Cheese announces major acquisition, WiseTech reaffirms guidance
- Bega Cheese (ASX:BGA) announces $534 million Lion Dairy & Drinks acquisition
- The real earnings growth driver for ASX bank stocks in FY21 isn’t what you think
- 5 things to watch on the ASX 200 on Thursday
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 Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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