On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a day to forget. The benchmark index crashed 2.45% to 7,667.8 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
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ASX 200 expected to crash again
The Australian share market looks set for one of its worst days in years 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 331 points or 4.3% lower. In the United States, the Dow Jones fell 5.5%, the S&P 500 sank 6%, and the Nasdaq crashed 5.8%.
Oil prices plunge
It looks set to be a very tough start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices plunged again on Friday night. According to Bloomberg, the WTI crude oil price was down 6.9% to US$62.32 a barrel and the Brent crude oil price was down 6.5% to US$65.58 a barrel. This dragged oil prices down to their lowest levels in over three years.
Buy Dyno Global shares
The team at Goldman Sachs is tipping Dyno Nobel Limited (ASX: DNL) shares as a buy. The company, formerly known as Incitec Pivot, has been given a buy rating and $3.10 price target. This suggests that upside of 32% is possible for investors from current levels. It said: "[W]e expect the core explosives businesses to benefit from tighter global nitrogen markets and domestic AN markets particularly as it recontracts its domestic tonnes. Following the sale of the Waggaman Ammonia plant, IPL intends to return A$1bn of capital to shareholders, including an A$900m buyback currently underway, which will support total returns."
Gold price pulls back
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price pulled back on Friday night. According to CNBC, the gold futures price was down 2.1% to US$3,056.1 an ounce. Traders were selling gold to cover losses following a selloff of stocks.
Buy WiseTech shares
WiseTech Global Ltd (ASX: WTC) shares are among a group of quality picks that Bell Potter has named as buys. It notes that "sentiment-driven selloffs can impact all stocks, meaning even high-quality, fundamentally sound businesses can experience valuation compression unrelated to their intrinsic worth. This creates valuable windows to buy quality stocks at more reasonable valuations." It has a buy rating and $122.50 price target on WiseTech's shares.
