On Friday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher. The benchmark index jumped 1.6% to 8,731.7 points.
Will the market be able to build on this on Monday? Here are five things to watch:
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ASX 200 expected to edge lower
The Australian share market looks set for a subdued start to the week despite a decent 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 13 points or 0.15% lower. In the United States, the Dow Jones was up 0.7%, the S&P 500 rose 0.2%, and the Nasdaq climbed 0.2%.
Oil prices fall
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could start the week in the red after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 1.75% to US$87.36 a barrel and the Brent crude oil price was down 1.7% to US$91.12 a barrel. This led to Brent crude oil posting its largest monthly loss in six years.
Buy Goodman shares
Bell Potter has named Goodman Group (ASX: GMG) shares as a buy this week. In its latest weekly REIT review, the broker has named the industrial property giant as a buy with a $36.45 price target. Based on its last close price of $31.67, this implies potential upside of 15% for investors over the next 12 months.
Gold price charges higher
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price charged higher on Friday night. According to CNBC, the gold futures price was up 1.35% to US$4,593 an ounce. Traders were buying gold after oil prices pulled back on US-Iran ceasefire optimism.
Sell CBA shares
The team at Medallion Financial Group thinks Commonwealth Bank of Australia (ASX: CBA) shares are a sell. According to The Bull, it thinks CBA's premium valuation is unjustified given tough trading conditions and fading earnings momentum. It said: "Australia's largest bank carries a premium valuation. Slowing credit growth, sticky inflation and proposed property tax changes are headwinds for this mortgage heavy business. Sentiment took a material hit recently when the stock posted its largest single-day decline of about 10 per cent since listing in 1991 following a disappointing trading update. Earnings momentum is fading and the valuation is still trading at a significant premium to peers."
