5 things to watch on the ASX 200 on Monday

Here’s what to expect on Monday…

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On Friday the S&P/ASX 200 Index (ASX: XJO) was on form and finished the week on a positive note. The benchmark index rose 0.7% to 7,362 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 looks set to start the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.4% higher this morning. This follows a strong end to the week on Wall Street, which saw the Dow Jones rise 1.1%, the S&P 500 climb 0.75%, and the Nasdaq push 0.5% higher.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price is up 1.2% to US$82.28 a barrel and the Brent crude oil price has risen 1% to US$84.86 a barrel. Oil prices climbed to three-year highs amid supply deficit forecasts.

Rio Tinto named as a buy

The Rio Tinto Limited (ASX: RIO) share price could be in the buy zone according to analysts at Goldman Sachs. In response to its third quarter update, the broker has put a buy rating and $122.40 price target on the mining giant’s shares. It said: “We note the new guidance is in-line with GSe and the Sep Q production was overall in-line or a touch better than GSe.”

Gold price sinks

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price tumbled lower on Friday night. According to CNBC, the spot gold price fell 1.7% to US$1,768.30 an ounce. Improving investor sentiment appears to have weighed on the safe haven asset.

Iron ore price falls

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch after the spot iron ore price softened on Friday night. According to Metal Bulletin, the benchmark iron ore price fell 0.5% to US$125.22 a tonne. This iron ore price recorded a small weekly gain during another volatile week.

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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 has no position in any of the stocks mentioned. 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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