UPDATE: The Australian share market is bracing for a challenging start on Monday, October 23, 2023, following a turbulent end to last week. The S&P/ASX 200 Index (ASX: XJO) closed down 1.65% at 8,634.5 points on Friday, raising concerns about its ability to rebound.
Market analysts are predicting the ASX 200 will open 17 points or 0.2% lower based on the latest SPI futures data. This follows a mixed performance on Wall Street, where the Dow Jones fell 0.65% and the S&P 500 dipped 0.05%, while the Nasdaq managed a slight gain of 0.15%.
In a potential silver lining for energy stocks, oil prices surged over the weekend. The price of West Texas Intermediate (WTI) crude rose by 2.2% to US$64.39 a barrel, and Brent crude increased by 2.4% to US$60.09 a barrel. This spike was influenced by the suspension of oil exports from a Russian port following an attack, possibly boosting shares of companies like Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS).
Investors should also keep an eye on Elders Ltd (ASX: ELD) today, as the agribusiness firm is set to announce its FY 2025 results. Analysts from Citi anticipate earnings before interest and tax (EBIT) of $144 million, alongside a fully franked dividend of 36 cents per share.
On a negative note, gold stocks may struggle at the opening bell. Shares of Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) are expected to decline after gold futures fell 2.4% to US$4,094.20 an ounce on Friday. Hawkish comments from the US Federal Reserve have placed downward pressure on the yellow metal.
Additionally, Bell Potter has identified several ASX 200 shares as high conviction picks, including Woolworths Group Ltd (ASX: WOW) and Endeavour Group Ltd (ASX: EDV). Their strategy focuses on staples benefiting from a recovery in out-of-home consumption, indicating a shift in market sentiment toward these stocks.
Investors are advised to stay tuned for further updates as the market opens and reacts to these pivotal developments. The market’s performance today could set the tone for the week ahead, making it crucial for traders and investors to remain vigilant.
As always, we will provide timely updates on ASX movements and key stock performances throughout the day.
