On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week in a subdued manner. The benchmark index fell 0.2% to 6,405.2 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to rise.
It looks set to be a positive start to the week for the Australian share market after a strong finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 16 points or 0.25% at the open. On Friday night in the United States, the Dow Jones rose 1.4%, the S&P 500 climbed 1.4%, and the Nasdaq pushed 1% higher. The S&P 500 hit a record high on Friday.
Oil prices drop lower.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a soft start to the week after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.4% to US$40.13 a barrel and the Brent crude oil price dropped 1.7% to US$42.78 a barrel. This didn't stop oil prices gaining around 8% for the week.
Elders FY 2020 result.
The Elders Ltd (ASX: ELD) share price will be on watch today when it releases its full year results. Goldman Sachs is tipping the agribusiness company to deliver a better than expected result. It commented: "We are 5%/8% above Bloomberg EBIT/EPS consensus and expect a strong result." It is forecasting EBIT of $116 million and earnings per share of 71 cents. Goldman has a conviction buy rating and $13.65 price target on its shares.
Gold price pushes higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price climbed 0.7% to US$1,886.20 an ounce. This was driven by mounting pandemic and vaccine worries.
GrainCorp upgraded.
The GrainCorp Ltd (ASX: GNC) share price could be heading higher according to analysts at Goldman Sachs. The broker has upgraded the company's shares to a buy rating with a $5.34 price target. Goldman commented: "We view GNC as providing an attractive combination of near-term cyclical tailwinds and long-term structural benefits."
