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5 things to watch on the ASX 200 on Monday

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a difficult week with the smallest of positive days. The benchmark index rose a fraction of a point to 6,715.4 points.

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

ASX 200 expected to fall.

It looks set to be a disappointing start to the week for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 16 points or 0.25% lower. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 0.6%, the S&P 500 drop 0.7%, and the Nasdaq tumble 0.9% lower.

Ramsay upgraded to conviction buy rating.

The Ramsay Health Care Limited (ASX: RHC) share price could push higher today after analysts at Goldman Sachs upgraded its shares to a conviction buy rating from neutral. The broker has also lifted its price target on the private hospital operator’s shares to $70.00. Goldman believes the improvement in near-term fundamentals is not yet reflected in consensus forecasts or current trading multiples.

Oil prices drop lower.

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.3% to US$52.36 a barrel and the Brent crude oil price dropped 2.3% to US$55.10 a barrel. Oil prices tumbled after demand fears hit sentiment.

Gold price sinks.

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 sank lower on Friday. According to CNBC, the spot gold price dropped 1.2% to US$1,829.90 an ounce. Traders were selling the precious metal after the US dollar strengthened.

Dexus upgraded.

The DEXUS Property Group (ASX: DXS) share price will be on watch today after Goldman Sachs took its sell rating off the property company’s shares and upgraded them to a neutral rating. Goldman has a $9.65 price target on its shares and believes that the company is doing all the right things in a softening market. The broker estimates that its shares offer a 5.6% dividend yield at the current level.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited. 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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