On Thursday the S&P/ASX 200 Index (ASX: XJO) finished the year on a disappointing note. The benchmark index tumbled 1.4% to 6,587.1 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to tumble.
The Australian share market looks set to start the year in a disappointing fashion. According to the latest SPI futures, the ASX 200 is poised to open the week 80 points or 1.2% lower this morning. This is despite a positive finish to the year on Wall Street, which saw the Dow Jones rise 0.65%, the S&P 500 climb 0.65%, and the Nasdaq push 0.15% higher. This led to the Dow Jones finishing the year at a record high.
Travel shares on watch.
Australian travel shares will be on watch on Monday after more COVID-19 cases were reported across New South Wales and Victoria. There are concerns that this could delay the recovery of travel-related companies such as Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN).
Oil prices rise.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week positively after oil prices pushed higher. According to Bloomberg, the WTI crude oil price rose slightly to US$48.42 a barrel and the Brent crude oil price climbed 0.3% to US$51.80 a barrel. Despite their recent recovery, oil prices fell ~20% during 2020.
Gold price flat.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the spot gold price traded flat. According to CNBC, the spot gold price closed the year at US$1,898.67 an ounce.
Iron ore rises.
BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch after the iron ore price finished the year strongly. The steel making ingredient rose 0.4% in the final session of the year to end it at US$160.47 a tonne.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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