On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.6% to 8,091.9 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market looks set to rise again on Monday thanks to a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher. In the United States, the Dow Jones was up 0.55%, the S&P 500 was 1% higher, and the Nasdaq jumped 1.1%. This meant the S&P 500 rose for the fourth month in a row.
Oil prices sink
ASX 200 energy shares such as 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 3.1% to US$73.55 a barrel and the Brent crude oil price was down 2.4% to US$76.93 a barrel. Increasing supply from OPEC+ put pressure on oil prices.
Sell TPG shares
The TPG Telecom Ltd (ASX: TPG) share price is overvalued according to analysts at Goldman Sachs. In response to the telco giant's half year results release last week, the broker has reiterated its sell rating with a slightly improved price target of $4.40. This implies potential downside of 11% for investors from current levels. It commented: "We are Sell rated on TPG, given its risk/reward profile is skewed to the downside."
Gold price drops
It could 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 dropped on Friday. According to CNBC, the spot gold price was down 1.3% to US$2,527.6 an ounce. A strong US dollar put pressure on the precious metal. This was due to the market reducing expectations for a supersized rate cut from the US Federal Reserve soon.
Buy Mineral Resources shares
The team at Bell Potter thinks that investors should be snapping up Mineral Resources Ltd (ASX: MIN) shares while they are down in the dumps. In response to its full year results, the broker has retained its buy rating with a reduced price target of $66.00 (from $80.00). This suggests that the mining and mining services company's shares could rise 62% from current levels. The broker said: "MINs businesses are in a period of significant growth. Over the next two-years Lithium and Iron Ore production quantities will grow substantially, accompanied by associated increases in contracted Mining Services volumes."
