Business · Markets · 2 hrs ago
ASX 200 set for higher open as oil and gold prices rise
The S&P/ASX 200 rose 0.65% to 8,716.6 points on Friday, and futures indicated it could open 0.4% higher on Monday.
US stocks also rose on Friday, while oil prices gained amid rising tensions in the Middle East.
Higher oil prices may help Australian energy companies Santos and Woodside.
Gold futures climbed 1.4% after the metal had reached a two-month low earlier in the week, potentially supporting local gold miners.
Broker Bell Potter kept its buy rating on Life360 and set a lower price target of A$32, saying weakness in software and app shares had led it to reduce its valuation multiple.
It also kept a buy rating on Electro Optic Systems and raised its price target to A$13.80 after the company announced a £370 million counter-drone defence contract with a Gulf state.
Life360's quarterly result is due next month and may act as a catalyst, while the market's direction on Monday remains uncertain.
The S&P/ASX 200 is expected to open 37 points, or 0.4%, higher on Monday, according to SPI futures.
The outlook follows a 0.65% rise in the index to 8,716.6 points on Friday and gains on Wall Street.
Oil prices rose 0.4% on Friday night, while gold futures climbed 1.4%.
The article says rising Middle East tensions may have contributed to oil’s increase, while bargain buying may have lifted gold.
- Who
- Australian share market investors and companies in the S&P/ASX 200.
- What
- The ASX 200 is expected to open higher, with rising oil and gold prices supporting energy and gold shares.
- When
- Monday, following market movements on Friday and Friday night.
- Where
- Australia’s share market; the oil and gold price movements were reported internationally.
- Why
- SPI futures point to a higher open after gains on Wall Street. The article says Middle East tensions may have lifted oil and bargain buying may have raised gold.
This story does not have two clearly opposing sides.
We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore.
The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.
EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m).
The S&P/ASX 200 rose 0.65% to 8,716.6 points.
WTI crude rose 0.4% to US$91.85 a barrel and Brent crude rose 0.4% to US$104.72 a barrel.
Gold futures rose 1.4% to US$4,216.3 an ounce.
SPI futures indicated the ASX 200 was expected to open 37 points, or 0.4%, higher.
- ASX 200 Friday close
- 8,716.6 points, up 0.65%
- Expected ASX 200 open
- 37 points, or 0.4%, higher
- WTI crude
- US$91.85 a barrel, up 0.4%
- Brent crude
- US$104.72 a barrel, up 0.4%
- Gold futures
- US$4,216.3 an ounce, up 1.4%
Sources
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