5 things to watch on the ASX 200 on Monday

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in positive territory. The benchmark index rose 1.4% to 8,844.4 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 for a poor start to the week despite a strong session in Europe on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.4% lower. In the United States, Wall Street was closed for a public holiday. In Europe, the DAX was up 0.8%, the FTSE rose 0.25%, and the CAC climbed 0.4%.

Oil prices edge higher

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a reasonably positive start to the week after oil prices edged higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.15% to US$68.78 a barrel and the Brent crude oil price was up 0.45% to US$72.12 a barrel. This was despite OPEC approving further output increases.

Austal shares given hold rating

Bell Potter thinks Austal Ltd (ASX: ASB) shares are fully valued at current levels. This morning, the broker has retained its hold rating on the shipbuilder’s shares with a heavily reduced price target of $4.10 (from $6.30). Bell Potter said: “We downgrade our FY27-29e underlying earnings but upgrade statutory reflecting incorporation of MMF3/GDEB revenue. Our TP is lower on FY27 uEBIT downgrade. Although the valuation/growth arithmetic appears attractive, we believe we are entering a period of elevated risks as ASB ramps up several shipbuilding programs. A T-AGOS contract modification presents a potential near-term positive catalyst.”

Gold price storms higher

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a solid start to the week after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.5% to US$4,187.3 an ounce. This was driven by traders scaling back their interest rate hike bets.

Buy ResMed shares

Morgans has named ResMed Inc. (ASX: RMD) shares as a buy. According to the note, the broker has retained its buy rating and $41.72 price target on the medical device company’s shares. It thinks recent weakness has created a buying opportunity. The broker commented: “RMD has de-rated to ~16x forward earnings, its lowest valuation since the post-GFC period, despite consensus continuing to forecast double-digit EPS growth. GLP-1 therapies, positive Phase III data from Apnimed’s oral OSA therapy, the prospect of Philips re-entering the US PAP market from 2027 and broader healthcare sector de-rating, have driven recent share price weakness. While these risks are real, current industry data and RMD’s operating performance provide limited evidence of a material deterioration in underlying demand. We make no changes to FY26-28 forecasts or our A$41.72 target price. BUY.”

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 Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.