On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in positive territory. The benchmark index rose 1.4% to 8,844.4 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 fall
The Australian share market looks set for a poor start to the week despite a strong session in Europe on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.4% lower. In the United States, Wall Street was closed for a public holiday. In Europe, the DAX was up 0.8%, the FTSE rose 0.25%, and the CAC climbed 0.4%.
Oil prices edge higher
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a reasonably positive start to the week after oil prices edged higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.15% to US$68.78 a barrel and the Brent crude oil price was up 0.45% to US$72.12 a barrel. This was despite OPEC approving further output increases.
Austal shares given hold rating
Bell Potter thinks Austal Ltd (ASX: ASB) shares are fully valued at current levels. This morning, the broker has retained its hold rating on the shipbuilder's shares with a heavily reduced price target of $4.10 (from $6.30). Bell Potter said: "We downgrade our FY27-29e underlying earnings but upgrade statutory reflecting incorporation of MMF3/GDEB revenue. Our TP is lower on FY27 uEBIT downgrade. Although the valuation/growth arithmetic appears attractive, we believe we are entering a period of elevated risks as ASB ramps up several shipbuilding programs. A T-AGOS contract modification presents a potential near-term positive catalyst."
Gold price storms higher
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a solid start to the week after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.5% to US$4,187.3 an ounce. This was driven by traders scaling back their interest rate hike bets.
Buy ResMed shares
Morgans has named ResMed Inc. (ASX: RMD) shares as a buy. According to the note, the broker has retained its buy rating and $41.72 price target on the medical device company's shares. It thinks recent weakness has created a buying opportunity. The broker commented: "RMD has de-rated to ~16x forward earnings, its lowest valuation since the post-GFC period, despite consensus continuing to forecast double-digit EPS growth. GLP-1 therapies, positive Phase III data from Apnimed's oral OSA therapy, the prospect of Philips re-entering the US PAP market from 2027 and broader healthcare sector de-rating, have driven recent share price weakness. While these risks are real, current industry data and RMD's operating performance provide limited evidence of a material deterioration in underlying demand. We make no changes to FY26-28 forecasts or our A$41.72 target price. BUY."
