On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.2% to 7,309.2 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 to rise on Monday thanks to a strong finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.75% higher this morning. In the United States, the Dow Jones rose 0.8%, the S&P 500 climbed 0.8%, and the NASDAQ pushed 0.7% higher.

Oil prices jump

It could be a strong start to the week for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices jumped on Friday. According to Bloomberg, the WTI crude oil price was up 2.7% to US$76.78 a barrel and the Brent crude oil price rose 2.7% to US$80.33 a barrel. Oil prices rose after U.S. data showed crude output was declining while fuel demand was growing.

Pilbara Minerals named as a buy

The Pilbara Minerals Ltd (ASX: PLS) share price could be good value according to analysts at Citi. That’s despite its quarterly update being softer than it had hoped. This is because the broker believes that we are probably at the end of the downstream destocking cycle. Citi has retained its buy rating and $4.60 price target on the lithium giant’s shares.

Gold price relatively flat

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price traded broadly flat on Friday night. According to CNBC, the spot gold price edged a fraction higher to $1,999.4 per ounce. Improving risk sentiment appears to have weighed on the safe haven asset.

Coles rated as a sell

Coles Group Ltd (ASX: COL) shares could be overvalued according to analysts at Goldman Sachs. In response to the supermarket giant’s quarterly update, the broker has retained its sell rating and $15.80 price target. The broker said: “COL is trading at 12mth fwd P/E of 24x vs TP implied ~21x. Our 24/25e NPAT remains 9%/8% below consensus, largely due to lower margins.”

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

• Top ASX shares to buy in May 2023
• Here’s what brokers are saying about Pilbara Minerals shares
• Top brokers name 3 ASX shares to buy next week
• Want $300 in monthly passive income? Buy 24,300 shares of this ASX 200 stock
• These were the best-performing ASX 200 shares in April

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. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. 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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