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5 things to watch on the ASX 200 on Monday

On Friday the S&P/ASX 200 index ended the week on a very positive note. The benchmark index rose 0.8% to finish it at 6,929 points.

Will the local share market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to sink lower.   

It looks set to be a disappointing start to the week for the S&P/ASX 200 index. According to the latest SPI futures, the ASX 200 is poised to fall 52 points or 0.75% at the open. This follows a disappointing end to the week on Wall Street which saw the Dow Jones fall 0.45%, the S&P 500 drop 0.3%, and the Nasdaq index down 0.3%.

Weak U.S. jobs data.

U.S. markets tumbled lower on Friday after the release of weaker than expected U.S. jobs data. According to CNBC, the U.S. economy added 145,000 jobs in December. This compares to the market’s expectation of 160,000 new jobs. Combined with lower than expected wage growth, this sparked concerns over U.S. consumer spending and the health of the overall economy.

Oil prices tumble again.

The likes of Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could start the week on a subdued note after oil prices softened again. According to Bloomberg, the WTI crude oil price fell 0.9% to US$59.04 a barrel and the Brent crude oil price dropped 0.6% to US$64.98 a barrel.

Gold price higher.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be on the rise on Monday after the gold price pushed higher. According to CNBC, the spot gold price pushed 0.4% higher to US$1,560.10 an ounce after weakness on Wall Street following the release of December’s U.S. jobs data.

Australian dollar rises

The weaker than expected U.S. jobs data weighed on the greenback on Friday. This led to the Australian dollar climbing 0.6% to 69 US cents. This could weigh slightly on companies that generate meaningful revenues in U.S. dollars. This includes the likes of Appen Ltd (ASX: APX) and Nearmap Ltd (ASX: NEA).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. 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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