5 things to watch on the ASX 200 on Monday

It looks set to be a good day for the ASX 200…

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a disappointing note. The benchmark index fell 1.1% to 7,393.9 points.

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

ASX 200 expected to rise

The Australian share market looks set to start the week in a positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning. This follows a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.55%, the S&P 500 rise 0.1%, and the Nasdaq storm 0.6% higher.

Oil prices charge higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices charged higher on Friday. According to Bloomberg, the WTI crude oil price rose 2.1% to US$83.82 a barrel and the Brent crude oil price pushed 1.9% higher to US$86.06 a barrel. Oil prices rose despite speculation that China will release some of its reserves.

Tech shares on watch

It could be a good day for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) after their peers rebounded on Wall Street on Friday night. As the local tech sector tends to follow the Nasdaq’s lead, its 0.6% gain bodes well for trade today. However, with the Block share price continuing its slide, the Afterpay Ltd (ASX: APT) share price may not fare as well as others.

Gold price falls

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 dropped on Friday night. According to CNBC, the spot gold price fell 0.3% to US$1,787.40 an ounce. The gold price dropped amid rises in US bond yields and the US dollar.

Iron ore prices soften

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be in focus today after a pullback in the iron ore price. According to Metal Bulletin, the benchmark iron ore price fell 0.9% to US$126.75 a tonne. Market sentiment is being weighed down by most mills finishing the restocking of iron ore at China’s ports ahead of the upcoming Lunar New Year.

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 and has recommended Afterpay Limited, Appen Ltd, and Xero. The Motley Fool Australia owns and has recommended Afterpay Limited, Appen Ltd, and Xero. 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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