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.