On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week deep in the red. The benchmark index fell a sizeable 2.1% to 7,943.2 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to crash again
The Australian share market looks set to crash again on Monday following another selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 115 points or 1.5% lower. In the United States, the Dow Jones was down 1.5%, the S&P 500 was 1.85% lower, and the Nasdaq sank 2.4%. Weak economic data and recession concerns put pressure on stocks.
Oil prices sink
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult start to the week after oil prices sank again on Friday. According to Bloomberg, the WTI crude oil price was down 3.7% to US$73.52 a barrel and the Brent crude oil price was down 3.4% to US$76.81 a barrel. Concerns about the US economy drove the selling.
Buy NextDC shares
Goldman Sachs thinks that Nextdc Ltd (ASX: NXT) shares are in the buy zone. It has put a buy rating and $19.00 price target on its shares. The broker is expecting a strong result from the data centre operator this month based on industry feedback and quarterly results. It said: "[…] industry feedback also constructive, noting i) AU competition not as fierce as commonly believed, with all operators doing well; ii) NXT as largely locked-in contracts at its S3/S6/M2/M3 facilities, but these could take 2-3 months to finalize; (iii) NXT is now perceived as the #1 provider of Enterprise colo in AU."
Gold price slips
It could be a subdued start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price slipped on Friday. According to CNBC, the spot gold price was down 0.45% to US$2,469.8 an ounce. This was driven by profit taking by traders after strong gains.
Buy Super Retail shares
Goldman Sachs also thinks that Super Retail Group Ltd (ASX: SUL) shares are good value right now. This morning, the broker has reiterated its buy rating and $17.80 price target on the retailer's shares. It said: "We expect FY24 EBIT to come-in slightly above FactSet consensus at A$397m (vs Consensus A$396m). This will likely be driven by better than expected margins in Rebel. We view the first 6 week trading update for FY25 will be critical to how the stock trades on the day, and expect +2.5% sales in SCA, +2.0% in Rebel and BCF, +6% in Macpac."
