ASX 200 on Monday: Top five things to watch out for

Summary

  • The Australian shares are expected to open higher on Monday following Wall Street’s positive end to last week.
  • The ASX 200 benchmark may open the day 0.1% higher, according to the latest SPI Futures.
  • On Friday, the benchmark closed 2% higher at 7,179.50, hitting its highest level since 20 February.

The benchmark ASX 200 index is expected to open higher on Monday following Wall Street’s muted but positive end to the week. The benchmark may open the day 0.1% higher, according to the latest SPI Futures.

On Friday, the benchmark closed 1.2% higher at 7,179.50, hitting its highest level since 20 February, and posted a weekly gain of 2.1%.

Meanwhile, on Friday, S&P 500 closed higher by 0.19%, Dow Jones ended up 0.03% and NASDAQ settled higher by 0.59%.

READ MORE: COVID-19 effect: Healthcare takes over retail as biggest employer for Aussies

Here are top five things to watch out for:

Source: ©Shimanovichs   | Megapixl.com

Australian calendar

Tuesday – Data on balance of payments; government’s finance statistics; business indicators; building approvals and Reserve Bank of Australia’s (RBA) board meeting – Monetary Policy Decision.

Wednesday - Quarterly estimates of key economic flows in Australia, including gross domestic product (GDP), consumption, investment and income and savings.

Thursday - International trade in goods and services; retail trade; assets and liabilities of Australian securitisers; corrective services and industrial disputes.

Friday- Lending indicators and characteristics of Australian business.

Global calendar

Monday China May PMIs for manufacturing and services; Japan’s April industrial production and Euro zone’s May CPI.

Tuesday – US Markit manufacturing PMI and ISM manufacturing PMI for May and construction spending for April; Euro zone’s May Markit manufacturing PMI and inflation rate and April’s unemployment rate; Japan’s Jibun Bank’s Manufacturing PMI for May and China’s Caixin Manufacturing PMI for May.

Wednesday – US total vehicle sales for May and MBA mortgage applications for week ended May 28.

Thursday – US initial jobless claims; Markit Services and composite PMI for May; Euro zone’s Markit services and composite PMI for May; Japan’s Jibun Bank’s services and composite PMI for May and China’s Caixin services and composite PMI for May.

Friday – US non-farm payrolls, unemployment rate for May and factory orders for April; Euro zone’s retail sales for April; Japan’s household spending for April.

Source: ©Ymgerman    | Megapixl.com

Oil prices ease

The major energy stocks Beach Energy (ASX:BPT) and Santos (ASX:STO) could be under pressure on Monday after crude oil prices fell on Friday. While the WTI crude oil price dipped 0.8% to US$66.32 a barrel, the Brent crude oil price fell 0.7% to US$68.72 a barrel. However, both benchmarks advanced more than 3% last week.

READ MORE: Joblessness in Australia down to pre-pandemic levels

Gold prices inch higher

The gold prices surged on Friday amid the ongoing fall in US bond yields and weakness in US dollar. On Friday, the spot gold price rose 0.35% to US$1,905.30 an ounce. The bullion gained 1.4% last week. Northern Star Resources (ASX:NST) and Newcrest Mining (ASX:NCM) could be in focus.

 Link Administration’s (ASX:LNK) shares to be closely tracked

The shares of Link Administration Holdings Ltd would be closely tracked on Monday after news reports said that the tech company’s part-owned PEXA business will be undertaking an IPO in the coming days. Last week, private equity firm KKR proposed a takeover offer valuing the business at AU$3 billion.

Melbourne

Victoria reported five new local coronavirus cases on Sunday. The infected include a worker at a Melbourne aged care facility where not all the residents have been vaccinated. Melbourne’s virus outbreak could be a dampener for the domestic market this week.

READ MORE: 4 high yielding dividend stocks from the resource sector

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