On Thursday, the S&P/ASX 200 Index (ASX: XJO) finished the shortened week deep in the red. The benchmark index fell 1.6% to 7,473.3 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to start the week as it ended the last one. According to the latest SPI futures, the ASX 200 is poised to open the day 160 points or 2.15% lower. On Wall Street, the Dow Jones rose 0.7%, the S&P 500 climbed 0.6%, and the Nasdaq jumped 1.3%. However, all three indices fell hard on Friday amid a market selloff.
Megaport shares rated as a buy
The Megaport Ltd (ASX: MP1) share price could be a bit of a bargain following its selloff according to analysts at Goldman Sachs. A note this morning reveals that the broker has retained its buy rating but cut its price target down to $13.10. This implies potential upside of 45% for investors. While its quarterly update was disappointing, Goldman believes “the long term opportunity for MP1 is unchanged.”
Oil prices tumble
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough start to the week after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.8% to US$99.12 a barrel and the Brent crude oil price has fallen 3.5% to US$102.97 a barrel. Concerns about falling demand in China weighed on prices.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 1.7% to US$1,901.10 an ounce. The precious metal hit a four week low amid rate hike fears.
Mineral Resources rated as a buy
Goldman Sachs is also very positive on the Mineral Resources Limited (ASX: MIN) share price. Its analysts have retained their buy rating and lifted their price target on the mining and mining services company’s shares to $73.80. Goldman notes that Mineral Resources is benefiting from stronger than expected iron ore and lithium prices.