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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 the week on a disappointing note. The benchmark index fell 1.15% to 6,024 points.

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

ASX 200 set to drop lower.

The ASX 200 looks set to drop lower this morning after a poor finish to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the week 27 points or 0.45% lower. On Wall Street the Dow Jones fell 0.7%, the S&P 500 dropped 0.6%, and the Nasdaq fell 0.9%.

Oil prices edge higher.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week with a small gain. According to Bloomberg, the WTI crude oil price climbed 0.55% to US$41.29 a barrel and the Brent crude oil price rose 0.1% to US$43.34 a barrel. This was the third week out of four that oil prices have recorded weekly gains.

Gold price breaks through US$1,900 mark.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise on Monday after the gold price strengthened further. According to CNBC, the spot gold price rose 0.4% to US$1,925.20 an ounce. The gold price closed at a record high amid rising tensions between the U.S. and China.

Non-bank financial shares to buy.

Analysts at Goldman Sachs have been looking through non-bank financial shares ahead of earnings season and are recommending which ones to buy and which ones to sell. Top of the buy list is the QBE Insurance Group Ltd (ASX: QBE) share price with a conviction buy rating and an $11.52 price target. This price target implies potential upside of 11% excluding dividends. It believes QBE is well positioned to capitalise on the hardening cycle.

Non-bank financial shares to sell.

At the bottom of Goldman Sachs’ list among the non-bank financials is the ASX Ltd (ASX: ASX) share price. It has a sell rating and $70.29 price target on the stock exchange operator’s shares. This price target implies potential downside of 16% for its shares. It is bearish on ASX Ltd due to emerging rates business headwinds and its peak valuation belief.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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