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5 things to watch on the ASX 200 on Monday

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On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and finished the week with a small decline. The benchmark index fell 0.15% to 6,111.2 points.

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

ASX futures pointing 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 11 points or 0.2% lower. This is despite a solid finish to the week on Wall Street with all three major indices recording gains. The Dow Jones rose 0.7%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.4% higher.

Fortescue to declare big dividend?

The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch this morning when the iron ore producer releases its full year results. Because of its improving grades, strong iron ore prices, and its record shipments, expectations are high for Fortescue’s profits. As a result, analysts are forecasting a very generous full year dividend. Macquarie, for example, has forecast a fully franked dividend of ~$1.80 per share for FY 2020. This represents a 10% dividend yield.

Oil prices drop lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices dropped lower. According to Bloomberg, on Friday night the WTI crude oil price fell 1.1% to US$42.34 a barrel and the Brent crude oil price dropped 1.2% to US$44.35 a barrel. Despite this, oil prices recorded their fifth week of gains in the last six.

Gold price flat.

The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be steady on Monday after a subdued night of trade for the gold price on Friday. According to CNBC, the spot gold price traded flat at US$1,947 an ounce.

NIB full year result

The NIB Holdings Limited (ASX: NHF) share price will be one to watch this morning when it releases its full year results. According to CommSec, the private health insurer is expected to post a full year net profit after tax of just $95.02 million. Investors will no doubt also be looking for commentary around the positive and negative impacts of the pandemic on its financial performance.

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