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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 very disappointing note. The benchmark index fell 2% to 5,927.8 points.

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

ASX 200 expected to open flat.

The ASX 200 looks set to open the week flat despite a positive end on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 1 point lower. On Wall Street on Friday the Dow Jones rose 0.45%, the S&P 500 climbed 0.8% higher, and the Nasdaq index jumped 1.5%. The latter was given a boost by the Apple share price, which surged 10% higher after its quarterly update. The tech giant is now the world’s most valuable company.

Victoria “State of Disaster”.

With Victoria declaring a “State of Disaster” and locking down the state, a number of shares are likely to be impacted both positively and negatively. Reports of panic buying in supermarkets could give Coles Group Ltd (ASX: COL) shares a lift today. Whereas Crown Resorts Ltd (ASX: CWN) shares could struggle given how its Melbourne casinos and hotels are likely to be empty until mid-September.

Oil prices jump.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week on a positive note. According to Bloomberg, on Friday night the WTI crude oil price climbed 0.9% to US$40.27 a barrel and the Brent crude oil price rose 0.6% to US$43.52 a barrel. This means that oil prices recorded their third straight month of gains.

Gold price surges higher.

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 surged higher again. According to CNBC, the spot gold price rose 1% to US$1,985.90 an ounce. At one point on Friday night the gold price broke above US$2,000 an ounce for the first time on record.  

Goodman Group given sell rating.

Analysts at Goldman Sachs believe the Goodman Group (ASX: GMG) share price is overvalued. This morning the broker put a sell rating and $11.25 price target on the property company’s shares. It believes the market is pricing in an unrealistic earnings per share growth rate of ~9% per annum between FY 2020 and FY 2024. It feels a growth rate of 6% per annum is more realistic.

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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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Crown Resorts 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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