ASX Today: Market Expected to Open Slightly Lower on Monday
Synopsis
The ASX 200 is expected to open slightly lower on Monday despite strong gains in the previous session, with investors closely monitoring commodity prices and broker recommendations. Falling oil prices may pressure energy stocks such as Woodside and Santos after Brent crude recorded its biggest monthly decline in six years. Meanwhile, rising gold prices could support mining shares including Newmont and Northern Star Resources. Investors will also watch fresh analyst calls on Goodman Group and Commonwealth Bank as market sentiment remains sensitive to global geopolitical developments and movements in U.S. and commodity markets.
ASX 200 expected to fall on Monday due to fall in oil and gold prices.
Key Highlights
- ASX to fall on Monday
- Oil pricing suffered its sharpest monthly fall
- Trading in energy stocks may get sold off
- Safe-haven demand boosted gold prices
- Brokers succeed on Goodman Group, CBA shares
ASX 200 Set to Open Weaker
As per SPI futures, ASX 200 is expected to open 13 points lower. The downgrade follows the benchmark index closing 1.6 per cent higher at 8,731.7 points last Friday.
Wall Street rose, but investors remained on edge with conflicting signals from commodity prices, and reports of U.S. ceasefire talks with Iran.
Oil Slips Through The Stock Market
On Friday night, oil decreased, which is likely to weigh on the shares of Santos Ltd and Woodside Energy Group. The WTI crude dropped 1.75% to US$87.36 per barrel and the Brent crude was down 1.7%, at US$91.12 a barrel
Last week's news of a US-Iran ceasefire had alleviated concerns about supply disruptions in the Strait of Hormuz. Brent crude also recorded its largest monthly drop in six years.
Gold Stocks And Broker Notes In Focus
Newmont Corporation and Northern Star Resources may attract investors as gold prices climbed 1.35% higher to US$4,593 an ounce last week. Oil prices fell and geopolitical uncertainty continued to spur safe-haven buying from investors.
Bell Potter maintained its buy rating on Goodman group with a $36.45 price target that provides approximately 15% upside. In contrast, Medallion Financial Group has reiterated its sales rating on Commonwealth Bank of Australia shares, slowing earnings momentum, and valuation concerns.
FAQs
- ASX200 will fall how much today?
The ASX200 might fall 13 points.
- Why are ASX energy stocks under pressure?
Oil prices fell on hopes for a settlement of the US-Iran ceasefire.
- Which ASX shares get a boost from rising gold prices?
Shares of Newmont and Northern Star Resources.
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