On Friday the S&P/ASX 200 index ended the week on a mildly positive note. The benchmark index finished the day a fraction higher at 6,669.1 points.
Will the local share market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to rise.
The S&P/ASX 200 index looks set to start the week on a high after a strong finish to the week in Europe and on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 25 points or 0.4% this morning. In the United States the Dow Jones climbed 1.1%, the S&P 500 jumped 1%, and the Nasdaq stormed 1.1% higher.
The Westpac Banking Corp (ASX: WBC) share price will be one to watch this morning when it releases its full year results. According to a note out of Goldman Sachs, its analysts expect cash earnings (pre-one offs) to be down 13.5% to $6,974 million. The broker also expects the bank to cut its dividend to 85 cents per share, compared to the consensus estimate of 88 cents.
Oil prices surge.
Energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Monday after oil prices surged higher on Friday. According to Bloomberg, the WTI crude oil price charged 3.7% higher to US$56.20 a barrel and the Brent crude oil price jumped 3.5% to US$61.69 a barrel. Positive trade war developments were the catalyst for this rise.
Gold price slips.
Australia’s leading gold miners including Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a subdued note after the gold price slipped on Friday. According to CNBC, the spot gold price fell 0.2% to US$1,511.40 an ounce amid positive trade talks and strong U.S. jobs data.
Property data remains strong.
Shares with exposure to the property market such as REA Group Limited (ASX: REA) and Wesfarmers Ltd (ASX: WES) could be on the rise on Monday after more positive housing data. Over the weekend auction clearance rates were very strong once again. This follows CoreLogic Home Value Index data on Friday which revealed that Australian house prices increased 1.2% in October.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended REA Group Limited. 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.