On Friday the S&P/ASX 200 Index (ASX: XJO) finished a disappointing week on a mildly positive note. The benchmark index rose 0.1% to finish the week at 7,304 points.
Will the market be able to build on this on Monday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set to start the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% lower this morning. This follows a poor end to the week on Wall Street, which saw the Dow Jones fall 1.5%, the S&P 500 drop 1%, and the Nasdaq edge 0.1% lower.
Oil prices drop
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure after oil prices ended the week deep in the red. According to Bloomberg, the WTI crude oil price dropped 2.1% to US$70.86 a barrel and the Brent crude oil price fell 2% to US$73.52 a barrel. Oil prices tumbled amid concerns over rising Omicron cases and lockdowns.
Magellan loses mandate
The Magellan Financial Group Ltd (ASX: MFG) share price is likely to tumble even lower on Monday after losing a major contract. While the fund manager is yet to reveal which contract it has lost, it is widely expected to be the St James's Place mandate. This accounts for approximately a quarter of its institutional funds under management.
Gold price rises
Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a positive note after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.4% to US$1,804.90 an ounce. Omicron uncertainty supported demand for the safe haven asset.
NAB rated as a buy
The National Australia Bank Ltd (ASX: NAB) share price remains good value according to the team at Bell Potter. In response to the bank's annual general meeting, the broker has retained its buy rating and lifted its price target to $32.00. This was driven by an increase in its earnings forecasts and a valuation boost for its business banking segment. Though, it is worth noting that US banks fell heavily on Friday night, which may not bode well for NAB and the big four today.
