On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week in a subdued manner. The benchmark index fell 0.2% to 6,405.2 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rise.
It looks set to be a positive start to the week for the Australian share market after a strong finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to rise 16 points or 0.25% at the open. On Friday night in the United States, the Dow Jones rose 1.4%, the S&P 500 climbed 1.4%, and the Nasdaq pushed 1% higher. The S&P 500 hit a record high on Friday.
Oil prices drop lower.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a soft start to the week after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.4% to US$40.13 a barrel and the Brent crude oil price dropped 1.7% to US$42.78 a barrel. This didn’t stop oil prices gaining around 8% for the week.
Elders FY 2020 result.
The Elders Ltd (ASX: ELD) share price will be on watch today when it releases its full year results. Goldman Sachs is tipping the agribusiness company to deliver a better than expected result. It commented: “We are 5%/8% above Bloomberg EBIT/EPS consensus and expect a strong result.” It is forecasting EBIT of $116 million and earnings per share of 71 cents. Goldman has a conviction buy rating and $13.65 price target on its shares.
Gold price pushes higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price climbed 0.7% to US$1,886.20 an ounce. This was driven by mounting pandemic and vaccine worries.
GrainCorp upgraded.
The GrainCorp Ltd (ASX: GNC) share price could be heading higher according to analysts at Goldman Sachs. The broker has upgraded the company’s shares to a buy rating with a $5.34 price target. Goldman commented: “We view GNC as providing an attractive combination of near-term cyclical tailwinds and long-term structural benefits.”
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More reading
- 5 things to watch on the ASX 200 next week
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- Top fund manager tells investors to ‘go long’ in 2021
- ASX 200 drops 0.2% on Friday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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