5 things to watch on the ASX 200 on Monday

Afterpay Ltd (ASX:APT) and Oil Search Ltd (ASX:OSH) shares will be on watch on the ASX 200 on Monday…

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a mixed week with the smallest of gains. The benchmark index rose by a modest 5.3 points to 7,060.7 points.

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

ASX 200 futures pointing higher

The Australian share market looks set to start the week much as it finished it. According to the latest SPI futures, the ASX 200 is expected to open the week 4 points higher this morning. This is despite Wall Street finishing the week very strongly on Friday. The Dow Jones rose 0.7%, the S&P 500 climbed 1.1%, and the Nasdaq stormed 1.4% higher.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week on a positive note after oil prices pushed higher. According to Bloomberg, the WTI crude oil price rose 1.2% to US$62.14 a barrel and the Brent crude oil price climbed 1.1% to US$66.11 a barrel. That wasn’t enough to stop both WTI and Brent crude oil recording weekly declines amid demand recovery concerns.

Tech shares on watch

Tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) come have a positive start to the week after US tech stocks stormed higher on Friday night. The Nasdaq index rose 1.4% after US investors shrugged off concerns over possible capital gain tax increases. As the local tech sector tends to follow the lead of their US counterparts, today could be a good session.

Gold price softens

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price softened on Friday night. According to CNBC, the spot gold price fell 0.25% to US$1,777.80 an ounce. Strong US economic data put pressure on the safe haven asset.

Oil Search rated as a buy

The Oil Search Ltd (ASX: OSH) share price could be great value according to analysts at Goldman Sachs. This morning the broker reaffirmed its buy rating but trimmed its price target to $5.55. This compares to the latest Oil Search share price of $3.78. The broker named it as a key pick in the sector, noting that it has leverage to its expected improvement in oil prices.

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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 Appen Ltd. 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.

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