On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week with a solid gain. The benchmark index rose 0.5% to 7,295.4 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market is expected to open the week slightly higher this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher. This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.5%, the S&P 500 climb 0.9%, and the Nasdaq storm 1.5% higher.
Oil prices push higher
It could be a positive start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1.2% to US$69.62 a barrel and the Brent crude oil price rose 0.8% to US$71.89 a barrel. Oil prices recorded strong weekly gains thanks to OPEC’s promise to be disciplined with its production.
Tech shares on watch
Australian tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) could push higher today after their US counterparts ended the week strongly. The tech-heavy Nasdaq index jumped a sizeable 1.5% on Friday night. This followed the release of a US jobs report that showed solid gains, boosting confidence in the country’s economic comeback. As the local tech sector tends to follow the Nasdaq’s lead, this bodes well for today’s trade.
Gold price rebounds
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price rebounded on Friday night. According to CNBC, the spot gold price rose 1% to US$1,892.00 an ounce. This appears to have been driven by softening bond yields. This wasn’t enough to stop the gold price from recording a small weekly decline.
ASX Ltd rated as a sell
The ASX Ltd (ASX: ASX) share price may be overvalued according to analysts at Goldman Sachs. This morning the broker responded to the stock exchange operator’s May update by reiterating its sell rating and $67.46 price target on its shares. Goldman believes its earnings risks are skewed to the downside, particularly in futures.