On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell 0.9% to 7,273.3 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market is expected to start the week with a big gain. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1% higher. This follows a very positive end to the week on Wall Street, which saw the Dow Jones rise 1.3%, the S&P 500 climb 1.1%, and the Nasdaq storm 1% higher.
Oil prices rise
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week strongly after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.2% to US$74.56 a barrel and the Brent crude oil price has risen 1.4% to US$75.55 a barrel. Traders were buying oil after US inventories declined.
Tech shares could rise
It could be a good start to the week for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO). This follows a solid night of trade on the Nasdaq index on Friday night, which saw the tech-heavy index hit a new record high. As the local tech sector tends to follow the Nasdaq’s lead, this could may bode well for today’s session.
Gold price rises
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,810.6 an ounce. The gold price had its best week in seven amid concerns over the Delta strain of COVID-19.
Viva Energy given buy rating
The Viva Energy Group Ltd (ASX: VEA) share price could be good value according to analysts at Goldman Sachs. This morning the broker has responded to the fuel company’s market update by reaffirming its buy rating and $2.70 price target. Goldman said: “Viva 2Q21 was a strong beat vs GS’ above consensus 2Q21, 1H21 and 2021 forecast, which we expect to drive upgrades to consensus 2021 earnings. A return to ordinary dividends is increasingly probable in 1H21 and we forecast A2.9cps in the half.”