On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a strong gain. The benchmark index rose 0.9% to 7,442.7 points.
Will the market be able to build on this on Monday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to give back Friday's gains and more despite a reasonably positive finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 74 points or 0.95% lower on Monday. In the United States, the Dow Jones was up 0.15%, the S&P 500 was flat, and the NASDAQ climbed 0.35%.
Oil prices ease
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued start to the week after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.2% to US$71.43 a barrel and the Brent crude oil price was down 0.1% to US$76.55 a barrel. Mixed economic data weighed on sentiment.
Treasury Wine rated as a buy
Treasury Wine Estates Ltd (ASX: TWE) shares could have major upside potential according to analysts at Goldman Sachs. This morning, the broker has retained its buy rating with a $12.40 price target. In response to its recent acquisition, it said: "We believe a pro-active transition into a more premium portfolio via acquisitions after multiple attempts of organic build is positive."
Gold price falls
It could be a soft start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped on Friday. According to CNBC, the spot gold price was down 0.5% to US$2,033.8 an ounce. Nevertheless, the precious metal still recorded a weekly gain thanks to optimism over interest rate cuts.
Capricorn Metals is a buy
Bell Potter thinks that Capricorn Metals Ltd (ASX: CMM) is an ASX 200 share to buy right now. This morning, the broker has retained its buy rating on the gold miner's shares with an improved price target of $5.70. Its analysts highlight that the company's "gold production costs are among the lowest in the sector and it consistently generates strong cash margins."
