On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small gain. The benchmark index rose 0.2% to 8,209.5 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Monday following a mixed finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 68 points or 0.8% lower. In the United States, the Dow Jones was up 0.1%, but the S&P 500 was 0.2% lower and the Nasdaq dropped 0.35%.
Oil prices soften
ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a relatively subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.2% to US$71.00 a barrel and the Brent crude oil price was down 0.5% to US$74.49 a barrel. This couldn't stop oil prices from finishing higher for the week.
Buy Arcadium Lithium shares
The team at Bell Potter thinks that Arcadium Lithium (ASX: LTM) shares are undervalued at current levels. According to the note, the broker has responded to the lithium miner's investor day update by retaining its buy rating with a trimmed price target of $6.25. It said: "The company's lithium market analysis points to demand growing from 1.2Mtpa LCE in 2024 to 2.3Mtpa LCE by 2027 and 3.5Mtpa by 2030, a 21% CAGR. The supply outlook, even including aggressive production growth from China and Africa, sees market deficits of 0.3Mtpa by 2027 and 0.7Mtpa by 2030."
Gold price jumps
It could be a good start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the gold futures price was up 1.2% to US$2,646 an ounce. The gold price hit a new record high in response to last week's rate cut in the United States.
Buy Strike Energy shares
Goldman Sachs says that Strike Energy Ltd (ASX: STX) shares are in the buy zone right now. It has retained its buy rating on the energy producer's shares with an improved price target of 28 cents. The broker commented: "Trading at a ~10% discount to our risked NAV, we see long-term value in STX's West Australian gas resources also highlighted by recent acquisitions of Perth Basin explorers and developers over the past year."
