On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a heavy decline. The benchmark index fell 0.8% to 8,428.4 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 sink
The Australian share market looks set for a poor start to the week following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 156 points or 1.85% lower. In the United States, the Dow Jones was down 0.95%, the S&P 500 dropped 1.5%, and the Nasdaq tumbled 2%.
Oil prices rise
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 charged higher again on Friday night. According to Bloomberg, the WTI crude oil price was up 2.8% to US$98.23 a barrel and the Brent crude oil price was up 3.25% to US$112.19 a barrel. Supply concerns continue to drive prices higher.
Buy JB Hi-Fi shares
Analysts at Bell Potter think investors should buy JB Hi-Fi Ltd (ASX: JBH) shares after they hit a 52-week low. According to the note, the broker has retained its buy rating on the retailer's shares with a $90.00 price target. This implies potential upside of 25% for investors over the next 12 months. It said: "The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model."
Gold price falls
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price fell again on Friday night. According to CNBC, the gold futures price was down 0.7% to US$4,609.6 an ounce. This was driven by concerns that interest rates could be heading higher. The precious metal lost almost 10% in value during the week.
Buy Premier Investments shares
Bell Potter is also tipping Premier Investments Ltd (ASX: PMV) shares as a buy this week. This morning, the broker has retained its buy rating on the Peter Alexander and Smiggle owner's shares with a trimmed price target of $18.00 (from $20.00). It said: "We view PMV as trading at a discount to our coverage, considering the Premier Retail division with two global roll-out worthy brands together with equity investments, land bank and cash position while retaining a strong balance sheet supportive of M&A. Our SOTP sees an attractive $1.8b EV for the key PA brand vs PMV's $1.9b market capitalization."
