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5 things to watch on the ASX 200 on Monday

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a disappointing note. The benchmark index fell 1.7% to 5,067.5 points.

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

ASX 200 expected to rise.   

Wall Street may have finished the week on a subdued note, but that doesn’t look likely to stop the S&P/ASX 200 index from pushing higher this morning. According to the latest SPI futures, the index is expected to open the week 46 points or 0.9% higher. In the United States the Dow Jones fell 1.7%, the S&P 500 dropped 1.5%, and the Nasdaq fell 1.5%.

Oil prices expected to crater.

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under significant pressure on Monday after Saudi Arabia and Russia postponed their meeting amid rising tensions. This looks likely to mean Friday night’s strong gains are reversed and more. According to Bloomberg, the WTI crude oil jumped 12% to US$28.34 a barrel and the Brent crude oil surged 14% higher to US$34.11 a barrel.

Gold price climbs higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price climbed 0.5% on Friday to US$1,645.70 an ounce. The precious metal rose after the release of bleak U.S. payrolls data.

Flight Centre could return.

The Flight Centre Travel Group Ltd (ASX: FLT) share price could return to trade later today. The embattled travel agent giant is believed to be launching a capital raising to ensure it survives through these uncertain times. Flight Centre is understood to be trying to raise $500 million at a price of $7.20 per share. This will be a 27% discount to its last price of $9.91.

BHP upgraded to a buy rating.

The BHP Group Ltd (ASX: BHP) share price could be on the move today after analysts at Goldman Sachs upgraded the mining giant to a buy rating with a $36.60 price target. Goldman likes BHP due to its compelling valuation, strong balance sheet, and ability to make value-accretive acquisitions.

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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 Flight Centre Travel 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.

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