On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a stunning gain. The benchmark index jumped 1.75% to 6,758.8 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to give back most of Friday's gains this morning after a terrible end to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 102 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 1.3%, the S&P 500 dropped 2.4%, and the NASDAQ tumbled 3.1%.
Oil prices tumble
Energy producers including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough start to the week after oil prices tumbled on Friday night. According to Bloomberg, the WTI crude oil price was down 3.9% to US$85.61 a barrel and the Brent crude oil price fell 3.1% to US$91.63 a barrel. Global recession fears weighed heavily on oil prices again.
Woolworths' hack
The Woolworths Group Ltd (ASX: WOW) share price will be in focus today after the retail giant became the latest company to be hit by hackers. According to the release, a compromised user credential was used to gain unauthorised access to the customer relationship management systems of the recently acquired MyDeal business. An estimated 2.2 million customers have been affected.
Fortescue rated as a sell
The Fortescue Metals Group Limited (ASX: FMG) share price is significantly overvalued according to analysts at Goldman Sachs. This morning the broker has retained its sell rating and $13.40 price target on the mining giant's shares. This implies over 20% downside over the next 12 months. Goldman said: "The stock is trading at a premium to BHP & RIO; c. 1.5x NAV vs. RIO & BHP at c. 0.8x & 1x NAV, c. 6x EBITDA (vs. RIO & BHP on c. 3-5x), and c. 5% FCF vs. BHP & RIO on c. 5-10%."
Gold price falls heavily
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price fell heavily on Friday. According to CNBC, the spot gold price was down 1.7% to US$1,648.9 an ounce during the session. A strong US dollar put pressure on the precious metal.
