On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.15% to 9,019 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 rise
The Australian share market looks set for a positive start to the week following a strong finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.3% higher. In the United States, the Dow Jones was up 1%, the S&P 500 rose 0.8% and the Nasdaq stormed 1.15% higher.
Oil prices soften
It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices softened on Friday night. According to Bloomberg, the WTI crude oil price was down 0.45% to US$61.50 a barrel and the Brent crude oil price was down 0.1% to US$65.94 a barrel. This couldn't stop oil from recording a decent weekly gain on supply fears due to US sanctions on Russian oil producers.
Pilbara Minerals downgraded
Pilbara Minerals Ltd (ASX: PLS) shares are overvalued according to Bell Potter. This morning, the broker has downgraded the lithium miner's shares to a sell rating with an improved price target of $2.65. This implies potential downside of 18% from current levels. It said: "We downgrade our recommendation to Sell (prev. Hold) following recent strong share price appreciation. We hold a positive long term lithium market outlook and acknowledge PLS' market leading position and growth optionality. However, we believe PLS' current market valuation implies an SC6 index price of over US$1,400/t into perpetuity, compared with the current price of around US$850/t."
Gold price edges lower
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Evolution Mining Ltd (ASX: EVN) could start the week softly after the gold price edged lower on Friday night. According to CNBC, the gold futures price was down 0.2% to US$4,137.8 an ounce. This led to the gold price ending a nie-week winning streak.
Buy Northern Star shares
Northern Star Resources Ltd (ASX: NST) shares are in the buy zone according to analysts Bell Potter. This morning, in response to the gold miner's first quarter update, the broker retained its buy rating and $30.00 price target on its shares. It said: "Our Target price is unchanged from $30.00/sh and we maintain our Buy recommendation. Our NPAT increases are driven by adjustments to our gold price outlook, FY26 +7% FY27 +17% FY28 +16%."
