On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index dropped 0.2% to 8,547.4 points.
Will the market be able to bounce back from 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 selloff on Wall Street on Friday night. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.25% lower. In the United States, the Dow Jones was down 1.8%, the S&P 500 fell 1.1%, and the Nasdaq dropped 1.3%.
Oil prices jump
It could be a good start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 7.5% to US$73.18 a barrel and the Brent crude oil price was up 7% to US$74.23 a barrel. This was driven by concerns over supply risks from the Israel-Iran conflict.
Nufarm rated as a buy
Nufarm Ltd (ASX: NUF) shares are in the buy zone according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating and $3.45 price target on the agricultural chemicals company's shares. It said: "The market looks to be capitalising a loss in Omega-3 that in essence could be unwound within a season. […] NUF's current share price is effectively implying either negligible for Seeds or a Crop Protection business worth 25-50% less than global peers."
Gold price storms higher
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 1.5% to US$3,452.6 an ounce. The precious metal was given a boost from increased safe haven demand due to rising tensions in the Middle East.
CBA rated as a hold
Commonwealth Bank of Australia (ASX: CBA) shares are fully valued according to analysts at Red Leaf Securities. The broker told the Bull that it rates Australia's largest bank as a hold following its strong share price gains. It said: "[P]otential superannuation tax changes, elevated valuations and slowing credit growth temper near-term upside. Investors may consider holding until more clarity on Federal Government policy emerges, or until the macroeconomic outlook improves for banks.
