On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a high. The benchmark index rose 0.3% to 6,634.1 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX futures pointing higher.
The Australian share market looks set to start the week on a positive note after a solid finish on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the week 42 points or 0.6% higher. On Friday night, the Dow Jones jumped 0.8%, the S&P 500 climbed 0.9%, and the Nasdaq rose 0.7%. This led to the Dow Jones reaching a new record high.
Metcash half year results.
The Metcash Limited (ASX: MTS) share price will be on watch this morning when the wholesale distributor releases its half year results. According to a note out of Goldman Sachs, its analysts are expecting Metcash to report an 11.5% increase in revenue to $7,011 million and an underlying net profit after tax of $116.3 million. Metcash's sales are expected to be driven by a 7.6% increase in Food sales, a 12% lift in Liquor sales, and a 27.5% jump in Hardware revenue.
Oil prices rise.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices finished the week strongly. According to Bloomberg, the WTI crude oil price rose 1.4% to US$46.26 a barrel and the Brent crude oil price climbed 1.1% to US$49.25 a barrel. This led to oil prices recording their fifth successive weekly gain.
Gold price flat.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after a subdued finish to the week. According to CNBC, the spot gold price edged 0.1% lower to US$1,840 an ounce. Despite the soft finish, the precious metal recorded a solid weekly gain.
Xero rated as a buy.
The Xero Limited (ASX: XRO) share price could be heading higher from here according to Goldman Sachs. This morning the broker initiated coverage on the cloud-based business and accounting software provider with a buy rating and $157.00 price target. Goldman believes its total addressable market will increase significantly in the future. Which, combined with attractive unit economics, means it believes the long-term earnings opportunity for Xero is material.
