Headlines:
- ASX 200 Expected to Rise: The ASX 200 is anticipated to open 0.75% higher on Monday, driven by strong gains in U.S. stock markets following favorable inflation data.
- Energy Stocks Under Pressure: Oil prices declined on Friday, potentially impacting ASX 200 energy stocks like Santos and Woodside Energy, which may face a challenging start to the week.
- Investment Opportunities: Despite recent volatility, opportunities exist in Bellevue Gold, with Goldman Sachs (NYSE:GS) maintaining a buy rating, and ASX gold stocks could benefit from a surge in gold prices. Additionally, Treasury Wine Estates is recommended by analysts with expectations of a 20% rise in share value.
On Friday, the S&P/ASX 200 Index (ASX: XJO) closed the week positively, rising 0.75% to 7,921.3 points. Here’s what to watch for on Monday:
1. ASX 200 Likely to Continue Uptrend Following a strong finish on Wall Street, the ASX 200 is set to open 60 points or 0.75% higher on Monday, according to SPI futures. Wall Street saw gains across major indices with the Dow Jones up 1.6%, the S&P 500 rising 1.1%, and the Nasdaq gaining 1%, buoyed by new U.S. inflation data.
2. Oil Prices Dip Energy stocks like Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) may face a tough start as oil prices fell on Friday. WTI crude dropped 1.4% to US$77.16 per barrel, and Brent crude fell 1.5% to US$81.13 per barrel, pressured by concerns over Chinese demand.
3. Opportunity in Bellevue Gold Despite a nearly 22% drop on Friday, Goldman Sachs sees potential in Bellevue Gold Ltd (ASX: BGL). The broker has maintained its buy rating and reduced price target to $1.85, suggesting a potential upside of over 28% due to valuation and future growth prospects.
4. Gold Price Surge A significant rise in gold prices on Friday could benefit ASX 200 gold stocks such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: ASX:NST). The spot gold price increased 1.2% to US$2,427.9 per ounce, following supportive U.S. inflation data.
5. Treasury Wine Estates Stock Pick Analysts at Goldman Sachs continue to recommend Treasury Wine Estates Ltd (ASX: TWE), with a buy rating and a price target of $14.70. The broker expects the wine company’s shares to rise 20% from current levels, with strong results anticipated in the first half of FY25.