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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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a stunning gain. The benchmark index rose 1.5% to 7,699.4 points.

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

ASX 200 expected to fall

A tough session is expected for the Australian share market on Monday despite a strong finish on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning. On Friday on Wall Street, the Dow Jones was up 0.35%, the S&P 500 rose 1.1%, and the Nasdaq jumped 1.75%.

Oil prices drop

It could be a poor start to the week for ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.1% to US$72.28 a barrel and the Brent crude oil price was down 1.75% to US$77.33 a barrel. Strong U.S. jobs data reduced the odds of imminent interest rate cuts, which traders think could dampen crude oil demand.

Lynas linked with mega merger

Lynas Rare Earths Ltd (ASX: LYC) shares will be on watch today amid news that the rare earths producer has been in merger talks with New York listed Mp Materials Corp (NYSE: MP). According to the AFR, the two largest rare earths producers outside China have been talking but are not currently. Though, Lynas reportedly said that it is not ruling out a deal in the future.

Gold price falls

It is looking like it could be a poor start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price fell on Friday. According to CNBC, the spot gold price was down 0.8% to US$2,053.7 an ounce. The gold price dropped after the US dollar and bond yields rose following strong US jobs data.

Metcash capital raising

Metcash Limited (ASX: MTS) is widely expected to announce a capital raising this morning to fund the acquisition of Superior Food Group. According to the AFR, the wholesaler is looking to raise $300 million. Sources says that Metcash will be paying in the range of $390 million and $412 million for the food services distribution business.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended MP Materials. The Motley Fool Australia has recommended Metcash. 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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