On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a disappointing note. The benchmark index fell 1.6% to 5,755.7 points.
Will the ASX 200 be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 to drop lower.
The ASX 200 looks set to start the week in the red. According to the latest SPI futures, the benchmark index is poised to open the week 24 points or 0.45% lower. This is despite a reasonably positive end to the week on Wall Street. The Dow Jones traded roughly flat, the S&P 500 rose 0.5%, and the Nasdaq index climbed 1.3%.
Oil prices storm higher.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices stormed higher on Friday night. According to Bloomberg, the WTI crude oil price jumped 5.3% to US$35.49 a barrel and the Brent crude oil price pushed 5% higher to US$37.84 a barrel. These gains mean that oil prices almost doubled for the month.
Gold price jumps.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price rose 1.35% to US$1,751.70 an ounce. US-China tensions supported demand for the precious metal.
Iron ore miners on watch.
BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could push higher today after iron ore prices jumped on Friday night. According to Fastmarkets, courtesy of the AFR, the spot iron ore price jumped 5.5% to US$102.39 a tonne. This was driven by concerns that Brazilian supply could be impacted by the coronavirus pandemic.
Austal rated as a buy.
The Austal Limited (ASX: ASB) share price could be going a lot higher from here according to analysts at Goldman Sachs. They have reiterated their conviction buy rating and lifted the price target on the shipbuilder’s shares to $4.08. Goldman is positive on the company due to its multi-year secured backlog of work and potential margin improvement.
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More reading
- ASX investors brace to ride the next wave of “irrational exuberance”
- These were the best performing ASX 200 shares in May
- Buy these quality ASX dividend shares next week
- 3 five-star ASX 200 shares to buy in June
- What selling ASX shares means at tax time
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 Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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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