On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell a sizeable 2.5% to 5,817.7 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rebound strongly.
The ASX 200 looks set to finish the week on a high after a strong night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 69 points or 1.2% higher this morning. On Wall Street the Dow Jones rose 1.2%, the S&P 500 climbed 1.1%, and the Nasdaq index also rose 1.1%.
Bank shares to rise.
It looks likely to be a better day of trade for Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks. This follows a very positive night of trade for U.S. bank stocks, which played a key role in driving the major indices higher. The likes of Bank of America, JPMorgan, Citi, and Wells Fargo all climbed more than 3%.
Oil prices jump.
Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher on Friday after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.8% to US$39.09 a barrel and the Brent crude oil price is 3% higher at US$41.50 a barrel. Better than expected U.S. economic data gave oil prices a boost.
Qantas $1.9 billion equity raising.
The Qantas Airways Limited (ASX: QAN) share price could return from its trading halt this morning. The airline operator requested the halt on Thursday while it undertakes a $1.9 billion equity raising. This comprises a $1.4 billion fully underwritten placement to institutional investors and a $500 million share purchase plan. Qantas is raising the funds at $3.65 per share, which represents a 12.9% discount to its last close price.
Gold price largely flat.
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 traded mostly flat. According to CNBC, the spot gold price is down ever so slightly to US$1,773.80 an ounce.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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