On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher for a second day in a row. The benchmark index jumped 0.8% to 6,112.6 points.
Will the market be able to build on this on Friday? Here are five things to watch:
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ASX 200 to crash lower.
It looks set to be a very disappointing end to the week for the ASX 200 following a terrible night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to crash 120 points or 2% lower at the open. On Wall Street the Dow Jones sank 2.8% lower, the S&P 500 dropped 3.5%, and the Nasdaq crashed 5% lower. Apple shares were a major drag, falling 8% overnight. This appears to have been driven by profit taking.
Tech shares could tumble.
It could be a difficult day of trade for ASX tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) following the Nasdaq's sizeable decline. The local sector has a tendency to follow the lead of the tech-focused Nasdaq index. So with the Nasdaq falling 5% overnight, it doesn't bode well for Appen and co.
Oil prices lower.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.5% to US$41.31 a barrel and the Brent crude oil price has dropped 0.9% to US$44.02 a barrel.
Gold price weakens.
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 weakened despite the mini market crash on Wall Street. According to CNBC, the spot gold price fell 0.4% to US$1,937.30 an ounce overnight. Stronger than expected economic data is weighing on the precious metal.
Shares trading ex-dividend.
Another group of shares are going ex-dividend this morning. This could put further pressure on their shares on Friday. Trading ex-dividend this morning are financial technology company Bravura Solutions Ltd (ASX: BVS) and logistics solutions company WiseTech Global Ltd (ASX: WTC).
