On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.1% to 8,214.5 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 rebound
The Australian share market looks set to rebound on Monday following a good finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.55% higher. In the United States, the Dow Jones was up 1%, the S&P 500 was 0.6% higher and the Nasdaq rose 0.3%. Interest rate cut optimism lifted markets once again.
Oil prices fall
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices fell on Friday. According to Bloomberg, the WTI crude oil price was down 0.4% to US$75.56 a barrel and the Brent crude oil price was down 0.45% to US$79.04 a barrel. This couldn't stop oil prices from recording their second consecutive weekly gain amid rising tensions in the Middle East.
Hold Arcadium Lithium shares
Bell Potter has put a hold rating and $8.70 price target on Arcadium Lithium (ASX: LTM) shares after it received a takeover offer from Rio Tinto Ltd (ASX: RIO). It said: "We see little risk to the current deal in terms of an interloper or ultimately successful completion given the value premium and Board endorsement. With LTM's share price likely to trade towards the bid value of US$5.85/sh (~A$8.70/CDI) through to deal completion, our recommendation structure supports a Hold recommendation."
Gold price jumps
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a strong start to the week after the gold price jumped on Friday. According to CNBC, the gold futures price was up 1.3% to US$2,674.2 an ounce. This was driven by the release of US economic data that was supportive of rate cuts.
Buy Incitec Pivot shares
Goldman Sachs thinks that Incitec Pivot Ltd (ASX: IPL) shares are good value at current levels. According to the note, the broker has retained its buy rating on the commercial explosives and fertiliser company's shares with an improved price target of $3.30. It said: "The fertilisers segment will be pressured by further anticipated normalisation of Fertiliser prices, partially offset by any improvement in plant reliability. Importantly, we expect the core explosives businesses to benefit from tighter global nitrogen markets and domestic AN markets particularly as it recontracts its domestic tonnes."
