5 things to watch on the ASX 200 on Monday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) ended the shortened week with a gain. The benchmark index rose 0.5% to 7,555.4 points.

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

ASX 200 expected to rise again

Another positive session is expected for the Australian share market on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning. On Friday on Wall Street, the Dow Jones was up 0.15%, the S&P 500 fell 0.1%, and the Nasdaq dropped 0.35%. This couldn’t stop the latter two indices from recording solid weekly gains.

Oil prices climb

It could be a decent start to the week for ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.85% to US$78.01 a barrel and the Brent crude oil price was up 1.35% to US$83.55 a barrel. Oil prices had their best week since September amid optimism over US economic growth and Chinese stimulus.

ResMed shares named as a buy

ResMed Inc (ASX: RMD) shares are in the buy zone according to analysts at Goldman Sachs. In response to its second quarter update, the broker has reiterated its buy rating and lifted its price target on the sleep treatment company’s shares to $33.50. Goldman said: “We believe there is sufficient positivity to continue to see asymmetric upside risk at current valuations.”

Gold price broadly flat

It looks like it could be a subdued start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price traded broadly flat on Friday. According to CNBC, the spot gold price was up a fraction to US$2,018.2 an ounce. Traders appear nervous ahead of the US Federal Reserve’s interest rate meeting this week.

Sell Beach Energy shares

The team at Goldman Sachs thinks investors should be selling Beach Energy Ltd (ASX: BPT) shares. This morning, the broker has retained its sell rating on the energy producer’s shares with a slightly improved $1.66 price target. This sell rating is due largely to its valuation. The broker said: “While we see upside potential for BPT trading at a ~10% discount to NAV, we currently see more attractive opportunities within our upstream energy coverage with average ~20% upside.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in ResMed and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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