On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell 0.8% to 7,971.6 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 crash
The Australian share market looks set to sink again on Monday following a poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 141 points or 1.75% lower. In the United States, the Dow Jones was down 0.9%, the S&P 500 was 0.8% lower, and the Nasdaq dropped 0.8%. Though, this was before news that US President Biden is withdrawing from the race to be the next president.
Oil prices sink
ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough start to the week after oil prices sank on Friday. According to Bloomberg, the WTI crude oil price was down 3.25% to US$80.13 a barrel and the Brent crude oil price was down 2.9% to US$82.63 a barrel. Gaza ceasefire hopes weighed on oil prices.
Buy QBE shares
Goldman Sachs thinks that QBE Insurance Group Ltd (ASX: QBE) shares are great value at current levels. In response to the release of an update from one of its US peers, the broker has retained its buy rating and $21.00 price target on the insurance giant's shares. This implies potential upside of almost 24% for investors. While the update from its peer, Travelers (NYSE: TRV) was disappointing, the broker believes that the "narrative hasn't deteriorated" for QBE and highlights that pricing remains strong.
Gold price tumbles
It could also be a poor start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price tumbled on Friday. According to CNBC, the spot gold price was down 2.3% to US$2,446.8 an ounce. A stronger US dollar and profit taking put pressure on the precious metal.
South32 update
South32 Ltd (ASX: S32) shares will be on watch today when the mining giant releases its quarterly update. Commenting on expectations, Goldman Sachs said: "We expect all assets (excl. manganese) to achieve FY24 guidance except for Sierra Gorda copper which had a poor month of April (based on JV partner KGHM monthly reporting) and we think the operation may miss FY24 guidance (GSe 60kt vs. guidance of 67kt; S32 share) despite head grades expecting to improve in June. Also, with the rise in base metal prices in June Q, working capital may be a slight headwind into the FY24 result in our view. That said, we still expect ~US$250mn of FCF, up from ~US$150mn in the March Q, and for net debt to fall to ~US$680mn at end of June."
