On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a subdued note. The benchmark index rose by a modest 4.9 points to 7,063.5 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to storm higher
The Australian share market looks set to start the week on a very positive note. This follows a solid finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 35 points or 0.5% higher this morning. On Wall Street on Friday, the Dow Jones rose 0.5%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.1% higher. The Dow hit a new record high after posting its fourth straight week of gains.
Redbubble shares added to ASX 200
The Redbubble Ltd (ASX: RBL) share price could be given a boost by news that it will soon be added to the ASX 200 index. S&P Dow Jones Indices has announced that it will replace Coca-Cola Amatil Limited (ASX: CCL) on the benchmark index, subject to final court approval of its takeover. S&P Dow Jones Indices intends to make the changes prior to the open of trading on 22 April 2021.
Oil prices 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 softened. According to Bloomberg, the WTI crude oil price fell 0.5% to US$63.13 a barrel and the Brent crude oil price dropped 0.25% to US$66.77 a barrel. That wasn't enough to stop both WTI and Brent crude oil recording solid weekly gains. This was driven by optimism over a recovery in demand.
Gold price rises
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,777.30 an ounce. The easing of bond yields led to the precious metal having its best week in four months.
Goldman remains positive on Origin shares
The Origin Energy Ltd (ASX: ORG) share price could be dirt cheap after its significant decline on Friday. According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating but trimmed their price target slightly to $6.50. This implies potential upside of over 50% from the last Origin share price. Goldman said: "On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT)."
