5 things to watch on the ASX 200 on Monday

It looks set to be a busy day on the ASX 200 on Monday…

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the month on a disappointing note. The benchmark index fell 0.3% to 7,392.6 points.

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

ASX 200 poised to bounce back

The Australian share market is expected to bounce back on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% higher this morning. This is despite a poor end to the week on Wall Street, which saw the Dow Jones fall 0.4%, the S&P 500 drop 0.55%, and the Nasdaq tumble 0.7% lower.

Oil prices push higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.45% to US$73.95 a barrel and the Brent crude oil price has risen 0.4% to US$75.41 a barrel. Oil prices rose on hopes that demand is growing faster than supply.

Pro Medicus downgraded

The Pro Medicus Limited (ASX: PME) share price could come under pressure today. This morning Goldman Sachs downgraded the health imaging technology company’s shares to a neutral rating with a $55.60 price target. The broker made the move on valuation grounds after a strong period of share price performance. It notes that its shares are now trading 63% above five-year average multiples.

Gold price tumbles

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 tumbled on Friday night. According to CNBC, the spot gold price fell 1% to US$1,817.20 an ounce. The gold price weakened after the firmer US dollar ended last week’s Federal Reserve-inspired rally.

Iron ore price sinks

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could start the week in the red after the spot iron ore price continued its decline. According to Metal Bulletin, the iron ore price has fallen a further 7.5% to US$181.57 a tonne. This has been driven by Chinese steel output cuts.

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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. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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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