On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index fell 2% to 5,927.8 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to open flat.
The ASX 200 looks set to open the week flat despite a positive end on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 1 point lower. On Wall Street on Friday the Dow Jones rose 0.45%, the S&P 500 climbed 0.8% higher, and the Nasdaq index jumped 1.5%. The latter was given a boost by the Apple share price, which surged 10% higher after its quarterly update. The tech giant is now the world's most valuable company.
Victoria "State of Disaster".
With Victoria declaring a "State of Disaster" and locking down the state, a number of shares are likely to be impacted both positively and negatively. Reports of panic buying in supermarkets could give Coles Group Ltd (ASX: COL) shares a lift today. Whereas Crown Resorts Ltd (ASX: CWN) shares could struggle given how its Melbourne casinos and hotels are likely to be empty until mid-September.
Oil prices jump.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week on a positive note. According to Bloomberg, on Friday night the WTI crude oil price climbed 0.9% to US$40.27 a barrel and the Brent crude oil price rose 0.6% to US$43.52 a barrel. This means that oil prices recorded their third straight month of gains.
Gold price surges higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise on Monday after the gold price surged higher again. According to CNBC, the spot gold price rose 1% to US$1,985.90 an ounce. At one point on Friday night the gold price broke above US$2,000 an ounce for the first time on record.
Goodman Group given sell rating.
Analysts at Goldman Sachs believe the Goodman Group (ASX: GMG) share price is overvalued. This morning the broker put a sell rating and $11.25 price target on the property company's shares. It believes the market is pricing in an unrealistic earnings per share growth rate of ~9% per annum between FY 2020 and FY 2024. It feels a growth rate of 6% per annum is more realistic.
