5 things to watch on the ASX 200 on Monday

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

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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:

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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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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