5 things to watch on the ASX 200 on Monday

A solid start to the week is expected for Aussie investors.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) had a strong finish to the week and charged higher. The benchmark index rose 0.9% to 7,701.7 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 for another good session on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher. On Friday in the United States, the Dow Jones was up 1.5%, the S&P 500 rose 0.8%, and the Nasdaq was flat.

Oil prices fall

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices fell on Friday. According to Bloomberg, the WTI crude oil price was down 1.2% to US$76.99 a barrel and the Brent crude oil price was down 0.95% to US$81.11 a barrel. Traders were selling oil ahead of OPEC's meeting at the weekend.

Brickworks upgraded

The Brickworks Limited (ASX: BKW) share price could be undervalued according to analysts at Bell Potter. This morning, the broker has upgraded the building products company's shares to a buy rating with a $29.50 price target. It commented: "There are no material changes to forecasts, however we think the implied SOL discount and rent growth outlook on offer is attractive and upgrade our rating to Buy."

Gold price drop

It looks like ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price dropped on Friday. According to CNBC, the spot gold price was down 0.8% to US$2,347.7 an ounce. However, this couldn't stop the precious metal from recording its fourth consecutive monthly gain.

Champion Iron named as a buy

Goldman Sachs thinks investors should be buying Champion Iron Ltd (ASX: CIA) shares. In response to its FY 2024 result, the broker has retained its buy rating and $9.30 price target. This implies potential upside of more than 30% for investors. In addition, Goldman expects dividend yields of 4.3% in FY 2025 and 6.1% in FY 2026. It said: "CIA reported record EBITDA of C$553mn for FY24, up 11% YoY, broadly in-line with GSe of C$541mn but +9% vs. VA consensus."

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Goldman Sachs Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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