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5 things to watch on the ASX on Monday

On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) finished the financial year with a whimper when it gave back its earlier gains to finish the day down 0.3% at 6,194.6 points.

Will the market be able to start the new financial year in style on Monday? Here are five things to watch:

The ASX is expected to open higher.

The local market is expected to open the day higher on Monday. According to the latest SPI futures, the S&P/ASX 200 is poised to open 23 points or 0.4% higher following a positive end to the week on Wall Street. The Dow Jones Industrial Average finished the week with a 0.2% gain, the S&P 500 was up 0.1%, and the NASDAQ was 0.1% higher.

Oil prices have continued to rise.

Australian energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be set for another positive day of trade after the price of U.S. crude settled above US$74.00 for the first time since November 2014. Prices have been rising after sanctions against Iran threatened to remove a substantial volume of oil from world markets. WTI crude closed up 1% at US$74.15 a barrel and Brent crude was up 2% to US$79.44 a barrel. The latter is closing in on a three and a half year high.

Aluminium prices slide.

According to the London Metal Exchange, the aluminium price dropped lower on Friday. Aluminium closed the week with a 1% decline to US$2,159 a tonne, which could put pressure on the Alumina Limited (ASX: AWC) share price today.

CSL and ResMed rated as buys.

The shares of CSL Limited (ASX: CSL) and ResMed Inc (ASX: RMD) could be on the rise on Monday after they were the subject of positive broker notes out of Goldman Sachs. The broker has initiated coverage on both companies with buy ratings.

Ramsay Health Care rated as a sell.

Ramsay Health Care Limited (ASX: RHC) shares, on the other hand, could be set for another day in the red after Goldman Sachs initiated coverage on the private hospital operator with a sell rating. It is concerned that hospitals face industry headwinds which are expected to unwind over several periods.

Finally, here are three top shares to watch in FY 2019.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited and ResMed Inc. 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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