On Monday the S&P/ASX 200 Index (ASX: XJO) was in sensational form and stormed notably higher. The benchmark index rose 1.5% to 5,964.9 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to rise.
It looks set to be a positive day of trade for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 21 points or 0.35% higher this morning. This follows a very strong finish to the week on Wall Street. On Friday night the Dow Jones rose 1.3%, the S&P 500 climbed 1.6%, and the Nasdaq stormed a sizeable 2.25% higher.
Tech shares on watch.
It could be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Monday after their U.S. counterparts stormed higher on Friday night. The tech-heavy Nasdaq index finished the week in style with a 2.25% gain. The local tech sector has a tendency to follow the Nasdaq’s lead.
Oil prices soften.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price fell 0.15% to US$40.25 a barrel and the Brent crude oil price dropped 0.05% to US$41.92 a barrel. This meant oil prices recorded their third weekly decline in the last four. This was driven by coronavirus-related demand concerns.
Gold price drops lower.
The shares of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price dropped lower. According to CNBC, the spot gold price fell 0.55% to US$1,866.30 an ounce on Friday night. This led to the precious metal losing just under 5% of its value during the week. A strengthening U.S. dollar weighed on the gold price.
Premier Investments given neutral rating.
The Premier Investments Limited (ASX: PMV) share price may be fully valued according to one leading broker. According to a note out of Goldman Sachs, its analysts have put a neutral rating and $18.60 price target on the retail conglomerate’s shares. While Premier Investments delivered a strong result in FY 2020, the broker notes that it was boosted by wage subsidies and lower payments on rental obligations.
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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 and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. 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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