5 things to watch on the ASX 200 on Monday

Will the market be able to continue its positive run today?

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 with a small gain. The benchmark index rose 0.2% to 8,209.5 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Monday following a mixed finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 68 points or 0.8% lower. In the United States, the Dow Jones was up 0.1%, but the S&P 500 was 0.2% lower and the Nasdaq dropped 0.35%.

Oil prices soften

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a relatively subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.2% to US$71.00 a barrel and the Brent crude oil price was down 0.5% to US$74.49 a barrel. This couldn't stop oil prices from finishing higher for the week.

Buy Arcadium Lithium shares

The team at Bell Potter thinks that Arcadium Lithium (ASX: LTM) shares are undervalued at current levels. According to the note, the broker has responded to the lithium miner's investor day update by retaining its buy rating with a trimmed price target of $6.25. It said: "The company's lithium market analysis points to demand growing from 1.2Mtpa LCE in 2024 to 2.3Mtpa LCE by 2027 and 3.5Mtpa by 2030, a 21% CAGR. The supply outlook, even including aggressive production growth from China and Africa, sees market deficits of 0.3Mtpa by 2027 and 0.7Mtpa by 2030."

Gold price jumps

It could be a good start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the gold futures price was up 1.2% to US$2,646 an ounce. The gold price hit a new record high in response to last week's rate cut in the United States.

Buy Strike Energy shares

Goldman Sachs says that Strike Energy Ltd (ASX: STX) shares are in the buy zone right now. It has retained its buy rating on the energy producer's shares with an improved price target of 28 cents. The broker commented: "Trading at a ~10% discount to our risked NAV, we see long-term value in STX's West Australian gas resources also highlighted by recent acquisitions of Perth Basin explorers and developers over the past year."

Motley Fool contributor James Mickleboro has positions in Arcadium Lithium and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. 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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