On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in the red. The benchmark index fell 0.35% to 7,788.1 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 to sink on Monday following a selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.6% lower. On Friday on Wall Street, the Dow Jones was down 1.25%, the S&P 500 fell 1.45%, and the Nasdaq sank 1.5%. Inflation concerns continued to weigh heavily on investor sentiment.
Oil prices rise
ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.75% to US$85.66 a barrel and the Brent crude oil price was up 0.8% to US$90.45 a barrel. Traders were bidding oil prices higher amid tensions in the Middle East.
NextDC shares to return
NextDC Ltd (ASX: NXT) shares will be on watch this morning when the data centre operator returns from a trading halt. NextDC is undertaking a $1.3 billion capital raising to support the accelerated development and fit outs of its core Sydney and Melbourne data centre portfolio. UBS believes this is evidence that demand is not only very strong, but it is accelerating. In response to the news, UBS retained its buy rating and $20.10 price target.
Gold price rises
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a relatively positive start to the week after the gold price rose on Friday. According to CNBC, the spot gold price was up slightly to US$2,374.1 an ounce. The precious metal pushed higher after Middle East tensions drove demand for safe haven assets.
Domino's rated neutral
Goldman Sachs has been looking at the strategy day presentation from Domino's Pizza Enterprises Ltd (ASX: DMP) and wasn't overly impressed. In response, the broker has retained its neutral rating and A$39.70 price target. It commented: "We do not believe the company dissected the core issues of the problem regions such as France and Japan sufficiently and hence there remains a lack of transparency and conviction on how they will fix these issues. We remain unconvinced post this Strategy Day that there is a path to clear recovery other than further discounting and pausing of store roll-out in Japan/France to restore profitability."
