5 things to watch on the ASX 200 on Monday 21 June 2021

5 things to watch on the ASX 200 on Monday

It looks set to be a disappointing start to the week for the ASX…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published June 21, 2021 6:36 am AEST

On Friday the S&P/ASX 200 Index (ASX: XJO) finished another positive week with a small gain. The benchmark index rose 0.1% to 7,368.9 points.

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

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

ASX 200 expected to sink

The Australian share market is expected to start the week deep in the red this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 111 points or 1.5% lower. This follows a very poor end to the week on Wall Street, which saw the Dow Jones drop 1.6%, the S&P 500 fall 1.3%, and the Nasdaq tumble 0.9% lower.

Oil prices rebound

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 rebounded on Friday. According to Bloomberg, the WTI crude oil price rose 0.85% to US$71.64 a barrel and the Brent crude oil price rose 0.6% to US$73.51 a barrel. Traders were buying oil after OPEC sources said the cartel expected limited U.S. oil output growth this year despite rising prices.

Gold price falls

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price fell again on Friday night. According to CNBC, the spot gold price dropped 0.3% to US$1,769.00 an ounce. The precious metal had its worst week in over a year after the US Federal Reserve brought forward its rate hike plans.

PointsBet rated as a buy

The Pointsbet Holdings Ltd (ASX: PBH) share price is great value according to analysts at Goldman Sachs. This morning the broker has reiterated its buy rating and $17.20 price target on the sports betting company's shares. After holding a virtual meeting with management, Goldman remains confident in its growth prospects.

Iron ore price softens

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could come under pressure today after the iron ore price softened. According to Metal Bulletin, the spot iron ore price fell 0.9% to US$218.90 a tonne.

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