On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a tough week in a disappointing fashion. The benchmark index dropped 1.25% to 8,067 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market looks set to rebound on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher. In the United States, the Dow Jones was up 1.2%, the S&P 500 climbed 1.1%, and the Nasdaq rose 1%.
Oil prices edge higher
It looks set to be a reasonably positive start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices edged higher on Friday. According to Bloomberg, the WTI crude oil price was up 0.1% to US$69.46 a barrel and the Brent crude oil price was up 0.1% to US$72.94 a barrel. Traders appear unsure where oil prices are going from here given reduced interest rate expectations and weak Chinese demand.
Woodside rated neutral
Goldman Sachs has reaffirmed its neutral rating on Woodside shares this morning. However, with a price target steady at $26.90, the broker sees potential upside of over 14% and also a 4.4% dividend yield in FY 2025. It said: "We are Neutral rated on WDS on 1) Relatively full valuation trading at 0.9x NAV, 2) Ongoing Sangomar royalty risk, 3) Limited near-term production growth to offset potential commodity price weakness offering -1% production CAGR to 2027."
Gold price rises
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a great start to the week after the gold price charged higher on Friday night. According to CNBC, the gold futures price was up 1.25% to US$2,640.5 an ounce. The gold price pushed higher following the release of soft US inflation data.
Buy Champion Iron shares
Champion Iron Ltd (ASX: CIA) shares could be going cheap according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating with a slightly improved price target of $7.15 (from $7.10). This implies potential upside of 26% for investors. Bell Potter said: "We see upside risks to spot iron ore prices as a near-term catalyst. The shift into higher grade production in 2H 2025 will then likely support average realised prices and earnings amid an iron ore price environment generally expected to weaken."
