On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a small decline. The benchmark index fell 0.2% to 8,310.4 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
The Australian share market looks set to rise on Monday following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.35% higher. In the United States, the Dow Jones was up 0.8%, the S&P 500 rose 1%, and the Nasdaq jumped 1.5%.
It could be a soft start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices slipped on Friday. According to Bloomberg, the WTI crude oil price was down 1% to US$77.88 a barrel and the Brent crude oil price was down 0.6% to US$80.79 a barrel. This couldn't stop oil from rising for the fourth week in a row. Concerns over US sanctions have boosted oil prices.
The Lynas Rare Earths Ltd (ASX: LYC) share price is fully valued according to analysts at Goldman Sachs. This morning, the broker has reaffirmed its neutral rating on the rare earths producer's shares with a trimmed price target of $7.40. It said: "the stock is trading at ~0.9xNAV (A$7.58/sh) and pricing in ~US$70/kg NdPr, slightly below in-line with our long run US$75/kg (real $, from 2028) price forecast, and vs. spot at ~US$55/kg."
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a relatively subdued start to the week after the gold price dropped on Friday night. According to CNBC, the gold futures price was down 0.4% to US$2,740 an ounce. Nevertheless, the gold price rose for the third week in a row ahead of Trump's inauguration as US President.
Rio Tinto Ltd (ASX: RIO) shares stormed higher on Wall Street and the LSE on Friday night amid merger excitement. However, since then there have been reports that merger talks with Glencore have now ended. The Financial Times stated: "With the Rio talks now on ice, analysts believe a Glencore-Anglo combination could make sense. In the wake of BHP's failed bid, Anglo launched a radical restructuring, which will split off four of its businesses, and leave behind a company focused on coal and copper."
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