On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a disappointing note. The benchmark index fell 1.6% to 5,755.7 points.
Will the ASX 200 be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 to drop lower.
The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is poised to open the week 24 points or 0.45% lower. This is despite a reasonably positive end to the week on Wall Street. The Dow Jones traded roughly flat, the S&P 500 rose 0.5%, and the Nasdaq index climbed 1.3%.
Oil prices storm higher.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices stormed higher on Friday night. According to Bloomberg, the WTI crude oil price jumped 5.3% to US$35.49 a barrel and the Brent crude oil price pushed 5% higher to US$37.84 a barrel. These gains mean that oil prices almost doubled for the month.
Gold price jumps.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price rose 1.35% to US$1,751.70 an ounce. US-China tensions supported demand for the precious metal.
Iron ore miners on watch.
BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could push higher today after iron ore prices jumped on Friday night. According to Fastmarkets, courtesy of the AFR, the spot iron ore price jumped 5.5% to US$102.39 a tonne. This was driven by concerns that Brazilian supply could be impacted by the coronavirus pandemic.
Austal rated as a buy.
The Austal Limited (ASX: ASB) share price could be going a lot higher from here according to analysts at Goldman Sachs. They have reiterated their conviction buy rating and lifted the price target on the shipbuilder's shares to $4.08. Goldman is positive on the company due to its multi-year secured backlog of work and potential margin improvement.
