5 things to watch on the ASX 200 on Monday

Newcrest Mining Limited (ASX:NCM) and Zip Co Ltd (ASX:Z1P) shares will be on watch on the ASX 200 on Monday…

| More on:

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a solid gain. The benchmark index rose 0.7% to 6,757.9 points.

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

ASX 200 expected to rise.

The Australian share market looks set to start the week higher. According to the latest SPI futures, the ASX 200 is poised to open the week 7 points or 0.1% higher. This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.55%, and the Nasdaq jump 1% higher.

Tech shares on watch.

It could be a positive start to the week for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) after their US counterparts surged higher. On Friday the Nasdaq index rose 1% to close at a record high amid hopes that further stimulus is coming. Our local tech sector has a tendency to follow the lead of the tech-focused index.

Oil prices rise.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week positively after oil prices pushed higher. According to Bloomberg, the WTI crude oil price rose 2.8% to US$52.24 a barrel and the Brent crude oil price climbed 3% to US$55.99 a barrel. Oil is now trading at its highest level since February.

Gold price sinks lower.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price crashed lower on Friday. According to CNBC, the spot gold price sank 4.1% to US$1,835.40 an ounce. Traders were selling safe haven assets after US political risks faded.

Zip update.

The Zip Co Ltd (ASX: Z1P) share price could be one to watch on Monday. The buy now pay later provider is expected to release its second quarter update this morning. This will include the all-important holiday season shopping period. Investors will be keen to see if the company’s strong sales growth continued or was impacted by growing competition.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

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 and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News