On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in the red. The benchmark index dropped 0.8% to 7,646.5 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to rebound
The Australian share market looks set for a good start to the week on Monday following a rebound on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher. In the United States, the Dow Jones rose 1.55%, the S&P 500 jumped 1.8%, and the Nasdaq stormed 2.1% higher.
Oil prices rise
It could be a decent start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rebounded on Friday night. According to Bloomberg, the WTI crude oil price was up 2.4% to US$61.50 a barrel and the Brent crude oil price was up 2.3% to US$64.76 a barrel. This was driven by possible Iranian crude oil restrictions.
Buy Telix shares
The team at Bell Potter is tipping Telix Pharmaceuticals Ltd (ASX: TLX) shares as a buy. The broker has been looking at potential healthcare tariff impacts and believes the radiopharmaceuticals company will be only modestly impacted. It has a buy rating and $36.00 price target on its shares. Bell Potter said: "TLX relies on just in time manufacturing for its radiopharmaceutical products. All production is in the United States. Some partners rely on capital equipment items manufactured outside the US and these will likely be impacted by import tariffs. This could impact TLX's COGS over time."
Gold price soars
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 stormed higher on Friday night. According to CNBC, the gold futures price was up 2.4% to US$3,254.9 an ounce. Traders were bidding the precious metal higher as the trade war deepened.
Buy IGO shares
IGO Ltd (ASX: IGO) shares could offer major upside according to analysts at Goldman Sachs. According to its latest lithium update, the broker has retained its buy rating and $4.60 price target on its shares. Based on its current share price of $3.49, this implies potential upside of 32% for investors over the next 12 months. While Goldman expects lithium prices to remain subdued in the near term, it still expects IGO to remain free cash flow positive through to FY 2027.
