5 Things to Watch on the ASX 200 on Monday

 
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The ASX 200 Index (ASX: XJO) ended the week on a high note, with a remarkable gain of 1.15%, closing at 6,978.2 points. But what can we expect for Monday? Let's delve into five key factors to keep an eye on:

ASX 200 Expected to Continue Its Rise

The Australian share market appears poised for a strong start to the week, following a robust finish on Wall Street last Friday. According to the latest SPI futures, the ASX 200 is anticipated to open 14 points higher, representing a 0.2% increase on Monday. In the United States, the Dow Jones experienced a 0.65% surge, the S&P 500 rose by 0.95%, and the NASDAQ leaped by 1.4%.

Oil Prices Experience a Decline

For ASX 200 energy shares like Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO), it might be a challenging beginning to the week, as oil prices retreated on Friday. According to Bloomberg, the WTI crude oil price decreased by 2.35% to reach US$80.51 per barrel, while the Brent crude oil price declined by 2.25% to US$84.89 per barrel. This drop in oil prices was primarily driven by a reduction in the geopolitical risk premium.

Westpac's Full-Year Results

The Westpac Banking Corp (ASX: WBC) share price will be closely watched on Monday as Australia's oldest bank is scheduled to release its full-year results. Goldman Sachs predicts cash earnings of $7,133 million and a fully franked dividend of $1.40 per share. The consensus estimate is even higher, at $7,409 million and $1.411 per share.

Gold Prices Inch Upward

ASX 200 gold shares, including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST), may see a positive start to the week as the gold price inches higher. According to CNBC, the spot gold price increased by 0.3% to reach US$1,999.9 per ounce. This rise was fueled by hopes that the US Federal Reserve's rate hikes could be coming to a halt.

Macquarie Group Rated as Neutral

Macquarie Group Ltd (ASX: MQG) shares have received a neutral rating from analysts at Goldman Sachs, with a price target of $180.80. While the brokerage firm is optimistic about the company's medium-term outlook, it's not as enthusiastic about its current valuation. They state, "We remain optimistic on the business's medium-term outlook, which remains well positioned to benefit from both the global push towards decarbonization and further infrastructure investment. That said, with the stock trading on a 12-month forward P/E ratio of 15x, which is approximately 6% above its long-term average of 14.1x, offering only 12% upside."

In conclusion, Monday promises to be an exciting day for the ASX 200, with various factors at play. Investors should keep a close watch on the market, especially the ASX 200's performance, oil prices, Westpac's results, gold prices, and the rating of Macquarie Group. These elements will likely influence the market's direction.

FAQs:

1. What is the ASX 200?
The ASX 200 is a stock market index in Australia that represents the performance of the top 200 companies listed on the Australian Securities Exchange.\

2. Why are oil prices important for the ASX 200?
Oil prices can impact energy companies listed on the ASX 200, affecting their profitability and, consequently, the overall performance of the index.
Location: Australia

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