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.
