5 things to watch on the ASX 200 on Monday

Here’s what to watch on Monday…

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a solid week with a small gain. The benchmark index rose 0.1% to 7,394.4 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 start the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher. This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 0.7%, the S&P 500 climb 1%, and the Nasdaq storm 1.05% higher. The latte could bode well for Australian tech shares today.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.2% to US$72.07 a barrel and the Brent crude oil price has risen 0.4% to US$74.10 a barrel. Forecasts for tight supplies gave oil prices a boost.

IAG rated as neutral

The Insurance Australia Group Ltd (ASX: IAG) share price is close to being fully valued according to analysts at Goldman Sachs. A note out of the investment bank this morning reveals that its analysts have responded to IAG”s full year update by putting a neutral rating on the insurance giant’s shares and cutting their price target to $5.41. It said: “A third consecutive period impacted by reserve strengthening, alongside margin targets which still appear fairly one-dimensional in domestic commercial repricing aren’t immediately enticing,”

Gold price softens

Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price softened on Friday night. According to CNBC, the spot gold price fell 0.2% to US$1,805.90 an ounce. The gold price weakened after bond yields and the US dollar strengthened.

Lynas quarterly result

The Lynas Rare Earths Ltd (ASX: LYC) share price will be one to watch this morning when the rare earths producer releases its quarterly update. No guidance has been given for the period, but NdPr production has been 1359 tonnes and 1367 tonnes for the last two quarters. Something similar is expected in the fourth quarter.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. 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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