Motley Fool Australia

5 things to watch on the ASX 200 on Monday

Investor sitting in front of multiple screens watching share prices
Image source: Getty Images

On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week with a day in the red. The benchmark index fell 0.35% to 6,800.4 points.

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

ASX 200 expected to rise

The Australian share market looks set to bounce back on Monday. According to the latest SPI futures, the ASX 200 is poised to open the week 15 points or 0.2% higher. This is despite Wall Street ending the week in a disappointing fashion. On Friday, the Dow Jones fell 0.6%, the S&P 500 dropped 0.3%, and the Nasdaq edged 0.1% higher.

Oil prices drop lower

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 1.6% to US$52.27 a barrel and the Brent crude oil price fell 1.2% to US$55.41 a barrel. Oil prices tumbled after demand fears put a dent in sentiment.

Tech shares on watch

It could be a positive day of trade for tech shares including Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Monday after US tech shares ended the week at record highs. The tech-focused Nasdaq index climbed a sizeable 4% for the week following some strong quarterly updates.

Gold price pulls back

It could be a tough day for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped lower on Friday. According to CNBC, the spot gold price dropped 0.5% to US$1,859.90 an ounce. The price of the precious metal came under pressure after the US dollar firmed.

Iron ore softens

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch today after the iron ore price softened. According to Metal Bulletin, the benchmark iron ore price dropped 0.9% to US$169.97 a tonne. This led to the UK-listed BHP share price falling 1.2% on Friday night.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 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. 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.

Related Articles…

Latest posts by James Mickleboro (see all)