On Friday the S&P/ASX 200 index ended the week on a positive note. The benchmark index rose 0.65% to 6,733.5 points.
Will the local share market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to edge lower.
It looks set to be a subdued start to the week for the S&P/ASX 200 index. According to the latest SPI futures, the ASX 200 is poised to fall 4 points at the open. This follows a disappointing end to the week on Wall Street which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.7%, and the Nasdaq index down 0.8%.
Oil prices jump.
Rising tensions between the United States and Iran have given oil prices a major lift. This could mean energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) start the week on a high. According to Bloomberg, the WTI crude oil price rose 3.1% to US$63.05 a barrel and the Brent crude oil price stormed 3.6% higher to US$68.60 a barrel.
Gold price higher.
Those same tensions look set to give gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) a boost as well on Monday. According to CNBC, increasing demand for safe haven assets sent the spot gold price storming a further 1.6% higher to US$1,552.40 an ounce.
Tech shares on watch.
Australian tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could come under pressure on Monday after their U.S. counterparts tumbled lower on Friday. Our locally listed tech shares tend to follow the lead of the technology-focused Nasdaq index, which fell by a disappointing 0.8% on Friday night.
BHP and Rio Tinto lower.
A pullback in the prices of a number of base metals weighed on the U.S. listed shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) on Friday night. Copper was amongst the worst performing commodities, falling 1.3% on Friday. This could weigh on the OZ Minerals Limited (ASX: OZL) share price on Monday.
