On Friday, the S&P/ASX 200 Index (ASX: XJO) finished an improved week with a day in the red. The benchmark index fell 0.8% to 6,762.8 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to edge higher
The Australian share market looks set to start the week deep in the red. This follows another selloff on Wall Street on Friday night. According to the latest SPI futures, the ASX 200 is expected to open the day 61 points or 0.9% lower this morning. On Wall Street, the Dow Jones was down 2.1%, the S&P 500 dropped 2.8%, and the NASDAQ tumbled 3.8%. Strong US employment data has given rate hike bets a boost.
Oil prices jump
Energy producers such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a great start to the week after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 4.2% to US$92.64 a barrel and the Brent crude oil price rose 3.5% to US$97.92 a barrel. This was an increase of approximately 15% and 10%, respectively, for the week. OPEC's massive production cut plan was behind the rise.
Tech shares to fall
It could be a very difficult day for tech shares such as Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) on Monday. This follows a selloff on the tech-focused NASDAQ index on Friday night after the release of US employment data. The Block share price on the NYSE ended the session down by over 7%. This doesn't bode well for its ASX shares today.
Seek rated as a sell
The Seek Limited (ASX: SEK) share price could be overvalued according to analysts at Goldman Sachs. This morning the broker has slapped a sell rating and $20.70 price target on the job listings giant's shares. It said: "[W]e continue to believe that Seek is the most cyclical of our classifieds coverage, with a downturn in volumes likely to drive lower depth adoption."
Gold price falls
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price dropped on Friday. According to CNBC, the spot gold price was down 0.7% to US$1,709.3 an ounce during the session. Strong US jobs data spurred Fed rate hikes bets and put pressure on gold.
