ASX 200 Set for Subdued Start Amid Mixed Signals
The ASX 200 is anticipated to open lower on Monday following a decline in U.S. markets, while energy shares may benefit from rising oil prices.
The S&P/ASX 200 Index closed the previous week with a slight gain, rising 0.2% to 8,908.1 points. However, the Australian share market is expected to start the week on a subdued note, with SPI futures indicating a 4-point decline in the ASX 200. This comes after a challenging session on Wall Street, where the Dow Jones fell 1.1%, the S&P 500 dropped 1.8%, and the Nasdaq decreased by 2.85%.
In contrast, energy shares within the ASX 200, such as Santos Ltd and Woodside Energy Group Ltd, may see positive movement as oil prices surged on Friday. The WTI crude oil price rose by 2.1% to US$104.12 per barrel, while Brent crude increased by 2.6% to US$113.43 per barrel, driven by concerns over supply disruptions in the Middle East.
CSL Ltd has been identified as a sell by Sanlam Private Wealth, citing that the biotechnology company's share price has significantly recovered from $92.24 in June to approximately $197.15 recently. They believe the current price reflects an optimistic outlook that may not be justified, suggesting investors consider taking profits.
Additionally, ASX 200 gold shares like Capricorn Metals Ltd and Northern Star Resources Ltd may face challenges as gold prices fell 3.3% to US$3,898.9 an ounce, reaching a one-year low amid rising expectations for interest rate hikes.