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5 things to watch on the ASX 200 on Monday

Investor sitting in front of multiple screens watching share prices
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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week in a very disappointing fashion. The benchmark index sank 2.35% to 6,673.3 points.

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

ASX 200 expected to rebound

The Australian share market looks set to bounce back on Monday. According to the latest SPI futures, the ASX 200 is expected to open the week 29 points or 0.45% higher this morning. On Wall Street on Friday night, the Dow Jones fell 1.5%, the S&P 500 dropped 0.5%, and the Nasdaq index was up 0.55%.

Oil prices sink lower

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week deep in the red after oil prices sank lower on Friday night. According to Bloomberg, the WTI crude oil price fell 3.2% to US$61.50 a barrel and the Brent crude oil price fell 2.6% to US$64.42 a barrel. This was driven by a strengthening US dollar. However, it couldn’t stop oil prices recording solid weekly and monthly gains.

Mesoblast capital raising

The Mesoblast limited (ASX: MSB) share price will be one to watch this morning if it returns from its trading halt. The biotech company is seeking to raise funds to keep its operations running. On Friday the company revealed that it “has commenced a proposed equity-based private placement to a targeted industry investor to fund operations.” Mesoblast is understood to be aiming to raise around US$100 million.

Gold price tumbles

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price tumbled lower on Friday. According to CNBC, the spot gold price sank 2.6% to US$1,728.80 an ounce. Rising US bond yields and a strengthening US dollar sent the precious metal to an eight-month low.

Shares going ex-dividend

A number of shares are going ex-dividend this morning and could trade lower. One of those is iron ore giant Fortescue Metals Group Limited (ASX: FMG) for its fully franked interim dividend of $1.47 per share. This dividend alone equates to a yield of approximately 6%, which could mean its shares fall by a similar margin this morning.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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