On Christmas Eve, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.4% to 8,762.7 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 to open flat
The Australian share market looks set for a flat start to the week following a subdued finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day right where it closed last time out. In the United States, the Dow Jones and the S&P 500 fell a fraction, whereas the Nasdaq edged 0.1% lower.
Oil prices drop
It could be a poor start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.75% to US$56.74 a barrel and the Brent crude oil price was down 2.6% to US$60.64 a barrel. This was driven by concerns over a looming supply glut and a potential Ukraine peace deal.
BHP and Rio Tinto on watch
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a good session on Monday after their NYSE-listed shares rose over 1.5% on Friday night. A surging copper price could have been behind this, with the base metal hitting a record high in London and Shanghai. Strong demand and soft supply have helped the metal this year.
Gold price storms higher
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.1% to US$4,552.7 an ounce. Rate cut optimism gave the gold price another boost.
Accumulate Infratil shares
Morgans thinks that investors should be accumulating Infratil Ltd (ASXL IFT) shares. The broker has initiated coverage on the global infrastructure investment company with an accumulate rating and $11.30 price target. It said: "Infratil (IFT) is a high quality, concentrated structural growth investor targeting 11-15% pa post fee returns. IFT's investors have enjoyed c.18% pa returns over the last ~30 years. Assuming delivery of target returns, post fees the Net Asset Value (NAV) should nearly double over the next five years and create substantial value for equity holders."
