On Friday, the S&P/ASX 200 Index (ASX: XJO) ended a tough week in the red. The benchmark index fell 0.3% to 8,296.2 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to sink on Monday following a selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 64 points or 0.75% lower. In the United States, the Dow Jones was down 1.7%, the S&P 500 fell 1.7%, and the Nasdaq sank 2.2%.
Oil prices tumble
It looks set to be a tough start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled on Friday. According to Bloomberg, the WTI crude oil price was down 3% to US$70.25 a barrel and the Brent crude oil price was down 2.7% to US$74.43 a barrel. This was driven by a fading Middle East risk premium and an uptick in US crude oil stockpiles.
Block shares to crash
Block Inc (ASX: XYZ) shares are likely to crash deep into the red on Monday after Wall Street responded poorly to its results release. The payments giant's NYSE shares ended the session almost 18% lower. This could mean a double digit decline for its ASX shares, building on their 6% decline on Friday. Speaking of results, Iress Ltd (ASX: IRE), Lovisa Holdings Ltd (ASX: LOV), and NIB Holdings Limited (ASX: NHF) are releasing their half year results this morning.
Gold price slips
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price slipped on Friday night. According to CNBC, the gold futures price was down 0.2% to US$2,949.6 an ounce. However, this couldn't stop the precious metal from enjoying its eighth weekly gain in a row.
Sell Guzman Y Gomez shares
Goldman Sachs continues to rate Guzman Y Gomez Ltd (ASX: GYG) shares as a sell even after they sank 14% on Friday. According to the note, the broker has retained its sell rating with a $33.60 price target. This implies potential downside of 13% for investors. It said: "We remain cautious based on 1) an overly ambitious long-term store expansion profile; 2) a stretched valuation versus offshore peers; and 3) a stock overhang with c.13% of total shares expected to be released from escrow in early March 2025 and the remaining c.40% in August 2025."
