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:
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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.
