5 things to watch on the ASX 200 on Monday

Here’s what to expect on the ASX 200 on Monday…

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A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red following a market selloff. The benchmark index fell a disappointing 2.3% to 7,175.8 points.

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

ASX 200 expected to fall again

The Australian share market looks set to start the week with another decline. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.7% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 1.3%, the S&P 500 drop 1.9%, and the Nasdaq tumble 2.7%.

Oil prices fall

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices pulled back on Friday. According to Bloomberg, the WTI crude oil price fell 0.5% to US$85.14 a barrel and the Brent crude oil price fell 0.55% to US$87.89 a barrel. Despite this, oil prices rose for the fifth consecutive week amid supply concerns.

Aristocrat acquisition update

The Aristocrat Leisure Limited (ASX: ALL) share price will be one to watch today after the release of an update on its proposed $5 billion acquisition of UK listed real money gaming company Playtech. On Friday, rival suitor JKO Play advised that it does not intend to make an offer. This means that Aristocrat’s offer is the only firm one available to Playtech shareholders. Playtech shareholders will vote on the offer, which is being recommended by its board, at a meeting on 2 February

Gold price softens

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 softened on Friday night. According to CNBC, the spot gold price fell 0.35% to US$1,836.1 an ounce. The gold price recorded a 2.7% weekly gain despite its soft finish.

Fortescue update

The Fortescue Metals Group Limited (ASX: FMG) share price will be on watch today following a late announcement on Friday. That announcement reveals that it has signed an agreement with China’s state-owned Sinosteel. The two parties have signed a binding Memorandum of Understanding to complete a rapid project assessment of Sinosteel’s Midwest Magnetite Project in Western Australia. This includes a rail and port development at Oakajee.

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