On Friday the S&P/ASX 200 Index (ASX: XJO) finished a tough week on a positive note. The benchmark index rose to 0.5% to 7,406.6 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% lower this morning. This follows a very disappointing end to the week on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.8%, and the Nasdaq tumble 0.9%. Economic uncertainty led to the Dow recording five consecutive daily declines last week.
Oil prices storm higher
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong start to the week after oil prices stormed higher on Friday night. According to Bloomberg, the WTI crude oil price is up 2.3% to US$69.72 a barrel and the Brent crude oil price has risen 2.1% to US$72.92 a barrel. Traders were buying oil on tight US supplies.
Shares going ex-dividend
A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes NZ telco Chorus Ltd (ASX: CNU), healthcare company Healius Ltd (ASX: HLS), and investment platform provider HUB24 Ltd (ASX: HUB).
Gold price falls
Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price dropped on Friday night despite weakness on Wall Street. According to CNBC, the spot gold price fell 0.45% to US$1,792.1 an ounce. Uncertainty over the US Fed’s tapering timeline was weighing on the precious metal.
Telstra named as a buy
The Telstra Corporation Ltd (ASX: TLS) share price could be in the buy zone ahead of its strategy day this week. This morning Goldman Sachs reiterated its buy rating and lifted its price target to $4.40. Goldman advised: “Strategically we expect a continuation of the current strategy (simplicity and customer focus, network leadership and improved efficiency) but with a tilt towards growth (such as Energy, Health, FWA, Enterprise 5G).”