On Friday the S&P/ASX 200 Index (ASX: XJO) finished a very positive week on a high. The benchmark index rose 0.4% to 6,057.9 points.
Will the market be able to build on this on Monday? Here are five things to watch
ASX 200 set to edge lower.
The ASX 200 looks set to give back some of its gains on Monday. According to the latest SPI futures, the benchmark index is expected to open the week 35 points or 0.6% lower this morning. Wall Street was closed on Friday for the Independence Day holiday. In Europe the Dax fell 0.65% and the FTSE tumbled 1.3% lower after coronavirus cases jumped again.
Oil prices drop lower.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.8% to US$40.32 a barrel and the Brent crude oil price fell 0.8% to US$42.80 a barrel. Oil prices fell after growing coronavirus cases led to fuel demand worries.
Gold price softens.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Monday after the gold price softened. According to CNBC, the spot gold price fell 0.15% to US$1,787.80 an ounce despite European equities tumbling lower.
Adbri rated neutral.
The Adbri Ltd (ASX: ABC) share price was a very poor performer on Friday after announcing the non-renewal of a supply contract with Alcoa of Australia. One broker that is concerned by this news is Goldman Sachs. It commented: “Lime import pressures have been an ongoing risk in the WA market, with the contractual loss impacted by a decision to displace local production with a single importer sourcing from a number of locations throughout the region. ABC have also historically priced contracts vs IPP, implying the loss may have been driven by additional factors beyond price.” It has a neutral rating and $2.61 price target on Adbri’s shares.
Iron ore price rises.
It could be a positive day of trade for miners such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) after the iron ore price jumped. According to the AFR, the spot benchmark iron ore price rose a solid 1.2% on Friday to end the week at US$100.65 a tonne.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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