On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.35% to 7,538.4 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 rise
The Australian share market is expected to continue its positive run on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning. This follows a reasonably solid end to the week on Wall Street, which saw the Dow Jones rise 0.4%, the S&P 500 climb 0.2%, but the Nasdaq tumble 0.4% lower.
Oil prices drop
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be under pressure today after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price is down 1.2% to US$68.28 a barrel and the Brent crude oil price has fallen 0.8% to US$70.70 a barrel. This led to oil prices recording their biggest weekly decline in months amid demand concerns.
Telstra acquisition
The Telstra Corporation Ltd (ASX: TLS) share price will be on watch today. This follows reports the telco giant has signed an agreement to acquire Australian patient management software company MedicalDirector. According to the AFR, the company is buying the business in a deal worth $350 million. MedicalDirector will be part of the Telstra Health business, which is the country's biggest eHealth business.
Gold price tumbles
Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled on Friday night. According to CNBC, the spot gold price fell 2.5% to US$1,763.10 an ounce. A strong US jobs report sparked fears that the US Federal Reserve could begin tapering its economic support sooner than previously anticipated.
Suncorp full year results
The Suncorp Group Ltd (ASX: SUN) share price will be one to watch this morning when it releases its full year results. According to a note out of Goldman Sachs, its analysts are forecasting cash earnings of $1,005 million for FY 2021. The broker expects this to support a full year fully franked dividend of 62 cents per share. Goldman has a buy rating and $12.87 price target on its shares.
