5 things to watch on the ASX 200 on Monday

Metcash Limited (ASX:MTS) and Xero Limited (ASX:XRO) shares will be on watch on the ASX 200 on Monday…

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a high. The benchmark index rose 0.3% to 6,634.1 points.

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

ASX futures pointing higher.

The Australian share market looks set to start the week on a positive note after a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points or 0.6% higher. On Friday night, the Dow Jones jumped 0.8%, the S&P 500 climbed 0.9%, and the Nasdaq rose 0.7%. This led to the Dow Jones reaching a new record high.

Metcash half year results.

The Metcash Limited (ASX: MTS) share price will be on watch this morning when the wholesale distributor releases its half year results. According to a note out of Goldman Sachs, its analysts are expecting Metcash to report an 11.5% increase in revenue to $7,011 million and an underlying net profit after tax of $116.3 million. Metcash’s sales are expected to be driven by a 7.6% increase in Food sales, a 12% lift in Liquor sales, and a 27.5% jump in Hardware revenue.

Oil prices rise.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices finished the week strongly. According to Bloomberg, the WTI crude oil price rose 1.4% to US$46.26 a barrel and the Brent crude oil price climbed 1.1% to US$49.25 a barrel. This led to oil prices recording their fifth successive weekly gain.

Gold price flat.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after a subdued finish to the week. According to CNBC, the spot gold price edged 0.1% lower to US$1,840 an ounce. Despite the soft finish, the precious metal recorded a solid weekly gain.

Xero rated as a buy.

The Xero Limited (ASX: XRO) share price could be heading higher from here according to Goldman Sachs. This morning the broker initiated coverage on the cloud-based business and accounting software provider with a buy rating and $157.00 price target. Goldman believes its total addressable market will increase significantly in the future. Which, combined with attractive unit economics, means it believes the long-term earnings opportunity for Xero is material.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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