5 things to watch on the ASX on Monday

On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) ended the week with a day in the red and down 0.2% to 5,868.8 points. This limited its weekly gain to around 0.68% or 39.7 points.

Will the ASX be able to build on this weekly gain on Monday? Here are five things that could shape the day ahead:

SPI futures point to the ASX opening lower.

The ASX is expected to open the day lower by 15 points or 0.3% according to the latest SPI futures. This decline comes after sizeable falls in U.S. markets on Friday amid widening bond yields and falling commodity prices. The Dow Jones Industrial Average fell 0.8%, the S&P 500 dropped 0.85%, and the NASDAQ finished Friday with a 1.3% decline due largely to a steep fall by the Apple share price.

Commodity prices gave back gains.

Last week certainly was a positive one for Australia’s leading resources shares. However, a pull-back in aluminium, copper, iron ore, and nickel prices could mean that shares such as Alumina Limited (ASX: AWC), OZ Minerals Limited (ASX: OZL), Western Areas Ltd (ASX: WSA) start the week with a day in the red. For different reasons the gold price also dropped notably lower, much to the dismay of miners such as Evolution Mining Ltd (ASX: EVN).

Oil prices are moving higher.

Not all resources shares are necessarily due to start the week in the red. While WTI crude oil slipped slightly to US$68.06 per barrel, Brent crude oil continued its push higher on Friday and ended the session 0.4% higher to US$74.06 per barrel. Concerns that supply could be impacted by rising tensions in the Middle East have helped push prices higher.

Santos takeover rumours.

The Santos Ltd (ASX: STO) share price will be one to watch on Monday after reports indicated that Harbour Energy may not be the only one interested in acquiring the energy company. According to The Australian, French energy giant Total could be planning to team up with Macquarie Group Ltd (ASX: MQG) to launch a takeover offer.

Bond yields are widening.

Bond proxies such as Sydney Airport Holdings Pty Ltd (ASX: SYD) Transurban Group (ASX: TCL) could come under pressure today after bond yields widened in the United States. On Friday the 10-year Treasury yields climbed to 2.95%, just short of the symbolic 3% level. Traders appear to believe that recent increases in commodity prices could lead to higher levels of inflation and rate hikes from the U.S. Federal Reserve.

Here are three hot shares on the rise that are worth watching as well.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Apple and Transurban Group. 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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