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On Friday, the S&P/ASX 200 Index (ASX:XJO) ended a difficult week with another red day. The benchmark index fell 0.25% to 6,828.7 points.
Will the market be able to recover from this on Monday? Here are five things to watch:
ASX 200 expected to drop
The Australian stock market is likely to start the week in a similar style to the one it ended last week. This follows a disappointing end to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% lower this morning. On Wall Street, the Dow Jones was down 1.1%, the S&P 500 was also down 1.1% and the NASDAQ was down 1.3%. A strong US jobs report failed to alleviate concerns that the US Federal Reserve would continue to aggressively raise interest rates to combat inflation.
Oil prices rise
energy producers Santos Ltd. (ASX:STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday. According to Bloomberg, the price of WTI crude rose 0.3% to $86.87 a barrel and the price of Brent crude rose 0.7% to $93.02 a barrel. There is speculation that OPEC could announce production cuts this week to boost prices.
ASX 200 rebalancing
the zip co ltd (ASX:ZIP) Stock price could come under pressure today after S&P Dow Jones Indices announced that it would remove the buy-now-pay-later provider from the ASX 200 index in the upcoming rebalancing. Other stocks leaving the index include beleaguered AVZ Minerals Ltd. (ASX: AVZ), location technology company Life360 Inc. (ASX: 360) and sports betting company Pointsbet Holdings Ltd. (ASX:PBH).
The price of gold rises
A Strong US Jobs Report Could Mean Gold Miners Newcrest Mining Limited (ASX:NCM) and Northern Star Resources Ltd (ASX:NST) Have a positive start to the week on Monday. According to CNBC, the spot price of gold rose 0.8% to $1,722.6 an ounce on Friday night. The aforementioned jobs report led to a weakening of the US dollar and a boost to gold.
Fortescue shares are ex-split
the Fortescue Metals Group Limited (ASX:FMG) Stock price is likely to fall deep into the red on Monday. This is because this morning shares of the iron ore giant will trade dividend-free for its final dividend of $1.21 per share. Based on Fortescue’s current stock price, this dividend alone equates to a whopping 7% dividend yield. Its shares could fall in line with this performance today.