5 Key Things to Monitor on the ASX 200 this Monday

The ASX 200 Index (ASX: XJO) wrapped up the previous week on a high note, with a remarkable 1.15% gain, closing at 6,978.2 points. As we kick off a new week, it's essential to keep a close eye on several pivotal factors that could shape the market's performance.

1. ASX 200 Poised for Further Growth

The Australian share market is set for a promising start this week, following a robust finish on Wall Street last Friday. Based on the latest SPI futures, the ASX 200 is expected to open 14 points higher, indicating a 0.2% increase on Monday. In the United States, we witnessed the Dow Jones surging by 0.65%, the S&P 500 rising by 0.95%, and the NASDAQ leaping by 1.4%.

2. Declining Oil Prices May Impact Energy Shares

For ASX 200 energy shares like Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO), the week could kick off on a challenging note due to a retreat in oil prices on Friday. According to Bloomberg, the WTI crude oil price saw a 2.35% decrease, reaching $80.51 per barrel, while the Brent crude oil price dipped by 2.25% to $84.89 per barrel. This drop in oil prices is primarily attributed to a reduction in the geopolitical risk premium.

3. Westpac's Full-Year Results Awaited

All eyes will be on the Westpac Banking Corp (ASX: WBC) share price on Monday as Australia's oldest bank is scheduled to release its full-year results. Goldman Sachs predicts cash earnings of $7,133 million and a fully franked dividend of $1.40 per share. The consensus estimate is even higher, at $7,409 million and $1.411 per share.

4. Gold Prices Show Positive Momentum

ASX 200 gold shares, including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST), may experience a favorable start to the week as the gold price inches higher. According to CNBC, the spot gold price increased by 0.3% to reach $1,999.9 per ounce. This uptick is driven by optimism that the US Federal Reserve might slow down its rate hikes.

5. Macquarie Group Receives a Neutral Rating

Macquarie Group Ltd (ASX: MQG) shares have been assigned a neutral rating by analysts at Goldman Sachs, with a price target of $180.80. While the brokerage firm remains optimistic about the company's medium-term prospects, it's somewhat cautious about its current valuation. They state, "We remain optimistic about the business's medium-term outlook, given its strong positioning to benefit from both the global shift towards decarbonization and increased infrastructure investment. However, with the stock trading at a 12-month forward P/E ratio of 15x, which is roughly 6% above its long-term average of 14.1x, it offers only 12% upside."

In summary, Monday promises to be an eventful day for the ASX 200, with several influential factors in play. Investors are advised to closely monitor the market, paying special attention to the ASX 200's performance, oil prices, Westpac's financial results, gold prices, and the rating of Macquarie Group. These elements are likely to exert a substantial impact on the market's direction.