5 things to watch on the ASX 200 on Monday 12 October 2020 // Motley Fool Australia – Motley Fool Australia

Gold & Silver
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On Friday the S&P/ASX 200 Index (ASX: XJO) ended an incredible week with the smallest of gains. The benchmark index rose slightly to 6,102.2 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge lower.

The Australian share market looks set to start the week in a subdued fashion on Monday. According to the latest SPI futures, the ASX 200 is expected to fall 5 points or 0.1% at the open. This is despite Wall Street ending the week positively, with the Dow Jones rising 0.6%, the S&P 500 climbing 0.9%, and the Nasdaq index storming 1.4% higher.

Gold price surges higher.

It looks set to be a great day of trade for gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Monday. According to CNBC, the spot gold price surged 1.65% to US$1,926.20 an ounce on Friday night. This was driven by a weakening U.S. dollar and hopes that a U.S. stimulus deal will soon be reached. The silver price was even stronger and jumped 5.2%.

Coles outage.

The Coles Group Ltd (ASX: COL) share price could be one to watch after the supermarket giant was forced to shut its stores on Friday afternoon after suffering from a major outage. The company advised that a technical issue meant it was unable to process transactions for a period of time. This led to customers having to dump their trolleys and leave empty handed.

Tech shares on watch.

Tech shares such as Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P) could start the week on a high after their U.S. peers stormed higher on Friday night. The tech-heavy Nasdaq index finished the week with a sizeable 1.4% gain. The local tech sector has a habit of following the lead of the Nasdaq index.

Oil prices sink lower.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices dropped lower on Friday night. According to Bloomberg, the WTI crude oil price fell 1.4% to US$40.60 a barrel and the Brent crude oil price dropped 1.15% to US$42.85 a barrel. News that an oil worker strike in Norway ended weighed on prices. Though, this couldn’t stop oil from recording a gain of 9% for the week.

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Returns as of 6th October 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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