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5 things to watch on the ASX 200 on Monday

On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and finished a disappointing week with a decline. The benchmark index fell 0.6% to 5,919.2 points.

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

ASX 200 set to surge higher.

The ASX 200 looks set to surge higher this morning after a positive end to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 95 points or 1.6% higher. On Wall Street the Dow Jones rose 1.4%, the S&P 500 climbed 1.05%, and the Nasdaq pushed 0.65% higher. Positive data from Gilead’s coronavirus treatment trial boosted markets.

Oil prices drop lower.

The coronavirus treatment news appears to have given oil prices a boost as well, much to the delight of shareholders of energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). According to Bloomberg, the WTI crude oil price jumped 2.4% to US$40.55 a barrel and the Brent crude oil price climbed 2.1% to US$43.24 a barrel.

Gold price softens.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price softened. According to CNBC, the spot gold price fell 0.1% to US$1,801.9 an ounce. Improving investor sentiment weighed on the safe haven asset.

Afterpay rated as neutral.

Analysts at Goldman Sachs are calling time on the Afterpay Ltd (ASX: APT) share price rally. According to a note out of the investment bank, the broker has given the payments company’s shares a neutral rating with an improved price target of $70.15. While the broker is very positive on the company’s prospects, it feels its shares are fully valued at the current level.

TechnologyOne short attack.

Hong Kong-based GMT Research is back and is targeting enterprise software company TechnologyOne Ltd (ASX: TNE). According to the AFR, GMT Research claims Technology One is using accounting tricks to pull forward revenue and profits. This is “artificially creating growth and hiding a major slowdown.”

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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 AFTERPAY T FPO. 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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