On Friday the S&P/ASX 200 Index (ASX: XJO) finished the month on a disappointing note. The benchmark index fell 0.3% to 7,392.6 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 poised to bounce back
The Australian share market is expected to bounce back on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% higher this morning. This is despite a poor end to the week on Wall Street, which saw the Dow Jones fall 0.4%, the S&P 500 drop 0.55%, and the Nasdaq tumble 0.7% lower.
Oil prices push higher
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.45% to US$73.95 a barrel and the Brent crude oil price has risen 0.4% to US$75.41 a barrel. Forecasts for tight supplies gave oil prices a boost. Oil prices rose on hopes that demand is growing faster than supply.
Pro Medicus downgraded
The Pro Medicus Limited (ASX: PME) share price could come under pressure today. This morning Goldman Sachs downgraded the health imaging technology company’s shares to a neutral rating with a $55.60 price target. The broker made the move on valuation grounds after a strong period of share price performance. It notes that its shares are now trading 63% above five-year average multiples.
Gold price tumbles
Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled on Friday night. According to CNBC, the spot gold price fell 1% to US$1,817.20 an ounce. The gold price weakened after the firmer US dollar ended the Federal Reserve inspired rally last week.
Iron ore price sinks
BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could start the week in the red after the spot iron ore price continued its decline. According to Metal Bulletin, the iron ore price has fallen a further 7.5% to US$181.57 a tonne. This has been driven by Chinese steel output cuts.
The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.
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More reading
- These were the best performing ASX 200 shares in July
- These were the worst performing ASX 200 shares in July
- The BHP (ASX:BHP) share price is up 21% in the last 6 months. Is now a good time to buy shares in this ASX 200 giant?
- 2 outstanding ASX 200 blue chip shares named as buys for August
- How China’s war on tech companies can hit ASX shares where it hurts
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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