On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with the smallest of declines. The benchmark index fell slightly to 8,731.2 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
The Australian share market looks set for a poor start to the week following a mixed session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.65% lower. In the United States, the Dow Jones was down 0.2%, the S&P 500 rose 0.15%, and the Nasdaq pushed 0.4% higher.
Oil prices drop
ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a soft start to the week after oil prices pulled back on Friday night. According to Bloomberg, the WTI crude oil price was down 1.6% to US$100.30 a barrel and the Brent crude oil price was down 0.9% to US$103.87 a barrel. This was driven by optimism over Saudi Arabian oil flows.
Buy Nickel Industries shares
Nickel Industries Ltd (ASX: NIC) shares could be worth a look according to Bell Potter. This morning, the broker has retained its buy rating and $1.45 price target on the nickel producer's shares. It said: "NIC is one of the world's largest listed nickel producers and offers exposure across a range of nickel products and markets. It has a track record of maintaining margins through low nickel prices, benefitting from its diversified product suite and margin exposure across an integrated value chain. We retain our Buy recommendation and TP$1.45/sh."
Gold price rises
It could be a positive start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose on Friday night. According to CNBC, the gold futures price was up 0.55% to US$4,424.9 an ounce. Easing oil prices gave the precious metal a boost.
New Hope shares downgraded
New Hope Corporation Ltd (ASX: NHC) shares are overvalued according to Bell Potter. This morning, the broker has downgraded the coal miner's shares to a sell rating with a $5.00 price target. It said: "We have downgraded our NHC recommendation to Sell on recent share price appreciation. Our $5.00/sh Target Price already incorporates a 14% premium to our sum-of-the-parts valuation, reflecting NHC's leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. Beyond the ramp-up of New Acland Stage 3, NHC has a limited organic production growth pipeline, and we expect earnings will peak in FY27. We expect NHC may participate in further industry consolidation as an acquirer."
