On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.65% to 8,869.1 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 fall again
The Australian share market looks set for a poor start to the week following a disappointing 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 60 points or 0.7% lower. In the United States, the Dow Jones was down 0.35%, the S&P 500 fell 0.45%, and the Nasdaq tumbled 0.95%.
Oil prices ease
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 fell on Friday night. According to Bloomberg, the WTI crude oil price was down 0.3% to US$65.21 a barrel and the Brent crude oil price was down 0.4% to US$69.32 a barrel. Iran tensions gave oil prices a boost.
Buy ASK shares
Analysts at Bell Potter think investors should be buying Abacus Storage King (ASX: ASK) shares. Its analysts have initiated coverage on the self-storage company with a buy rating and $1.70 price target. It said: "Our investment case is predicated on a fundamental valuation disconnect between where ASK is trading (6.1% market implied cap rate, -13% discount to FY25 NTA, -20% to BPe FY26e NTA) and where storage assets/portfolios are clearing in the private market, with ASK-comparable assets transacting at-or-below 5% cap rates."
Gold price crashes
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price crashed on Friday night. According to CNBC, the gold futures price was down 8.25% to US$4,879.6 an ounce. Traders were selling gold and silver (down 25%) after Donald Trump picked his next US Federal Reserve chief. The nomination removed Fed independence fears.
Rio Tinto update
The Rio Tinto Ltd (ASX: RIO) share price will be one to watch on Monday. That's because the mining giant and Aluminum Corporation of China have announced a definitive agreement to acquire Votorantim's controlling shareholding in Companhia Brasileira de Alumínio. It is a vertically integrated low-carbon aluminium business in Brazil, supported by a 1.6 GW portfolio of renewable power generation assets. Management notes that the transaction will leverage Rio Tinto and Aluminum Corporation of China's deep and complementary expertise across the aluminium value chain to unlock the next phase of growth at Companhia Brasileira de Alumínio.
