UPDATE: The Australian stock market is bracing for a challenging start today as the S&P/ASX 200 Index (ASX: XJO) closed down 1.65% on Friday, sinking to 8,634.5 points. With the latest futures predicting a drop of 17 points or 0.2% at the opening bell, investors are on high alert.
The backdrop of uncertainty stems from a mixed performance on Wall Street, where the Dow Jones fell 0.65% and the S&P 500 edged down 0.05%. However, the Nasdaq managed a slight increase of 0.15%, leaving Australian investors questioning the potential for recovery.
Oil prices surge could provide a glimmer of hope for energy stocks today. Following news of a Russian port suspension due to an attack, the WTI crude oil price rose 2.2% to US$64.39 a barrel, while Brent crude climbed 2.4% to US$60.09. This uptick may bolster shares of Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS).
Investors will also be closely monitoring Elders Ltd (ASX: ELD) as the agribusiness firm releases its FY 2025 results today. Analysts from Citi anticipate earnings before interest and tax (EBIT) of $144 million and a fully franked dividend of 36 cents per share.
In stark contrast, ASX 200 gold shares like Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could face significant declines after gold futures prices plummeted 2.4% to US$4,094.2 an ounce. Hawkish remarks from the US Federal Reserve are putting pressure on the precious metal, raising concerns for investors.
Furthermore, Bell Potter has identified several high-conviction ASX 200 stocks, including Woolworths Group Ltd (ASX: WOW) and Endeavour Group Ltd (ASX: EDV), as potential market leaders. They emphasize the importance of staples and a recovery in out-of-home consumption, suggesting shifting preferences among investors.
As the market gears up for the day, all eyes will be on these critical developments. Investors should stay tuned for updates as the trading day unfolds. This is a pivotal moment for the ASX 200, and the implications could ripple through the market.
What will the ASX 200 look like at the end of the day? Investors are urged to keep their guard up and act swiftly as new data emerges.
