5 things to watch on the ASX 200 on Monday

Here are five things to watch on the first trading day of the week.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a stellar gain. The benchmark index rose 1.15% to 6,978.2 points.

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

ASX 200 expected to rise again

The Australian share market looks set to open the week higher following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher on Monday. In the United States, the Dow Jones was up 0.65% and the S&P 500 rose 0.95%, and the NASDAQ jumped 1.4%.

Oil prices fall

It could be a tough start to the week for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pulled back on Friday night. According to Bloomberg, the WTI crude oil price was down 2.35% to US$80.51 a barrel and the Brent crude oil price was down 2.25% to US$84.89 a barrel. Oil prices fell after the geopolitical risk premium reduced.

Westpac results

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Monday. That's because Australia's oldest bank is scheduled to release its full-year results. Goldman Sachs expects cash earnings of $7,133 million and a fully franked dividend of $1.40 per share. The consensus estimate is higher at $7,409 million and $1.411 per share.

Gold price edges higher

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price edged higher. According to CNBC, the spot gold price was up 0.3% to US$1,999.9 an ounce. Gold firmed on Friday amid hopes that the US Federal Reserve's hikes could be at an end.

Macquarie rated neutral

Macquarie Group Ltd (ASX: MQG) shares have been rated as neutral by analysts at Goldman Sachs with a price target of $180.80. While the broker likes the company, it isn't a fan of its current valuation. It said: "We remain optimistic on the business's medium-term outlook, which remains well positioned to benefit from both the global push towards decarbonisation and further infrastructure investment. That said, with the stock trading on a 12-month fwd PER of 15x, which is c.6% above its long-term average of 14.1x, offering only 12% upside."

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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