On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and tumbled notably lower. The benchmark index fell 0.9% to 6,982.7 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.65% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 1.3%, the S&P 500 climb 1.2%, and the Nasdaq rise 0.7%.
Oil prices sink
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week in the red after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$63.76 a barrel and the Brent crude oil price is down 3.4% to US$66.97 a barrel. Concerns about rising COVID-19 cases in India and the resumption of the US gasoline pipeline weighed on prices.
Xero rated as a buy
The Xero Limited (ASX: XRO) share price crashed lower following the release of its full year results on Thursday. One broker that believes this is a buying opportunity is Goldman Sachs. This morning the broker has reiterated its buy rating, albeit with a slightly trimmed price target of $151.00. It commented: “Reflecting the FY21 result and strong sub momentum, we revise FY22-23 revenue +3 to +4%. However, given the step up in investment our EBITDA is -29%/-28%, but our FY30+ earnings are largely unchanged.”
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price is up 0.25% to US$1,827.30 an ounce. The precious metal was given a boost from easing treasury yields.
Carsales shares to return?
The Carsales.Com Ltd (ASX: CAR) share price could return from its trading halt this morning. The car listings company has requested the halt in order to raise funds to acquire a 49% stake in United States-based business Trader Interactive for approximately US$624 million (A$800 million). To fund the acquisition, Carsales is looking to raise $600 million via a pro rata accelerated renounceable entitlement offer at $17.00 per new share.
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More reading
- ASX 200 sinks alongside largest US inflation rise in 12 years
- Has the A2 Milk (ASX:A2M) share price finally found a bottom?
- ASX 200 falls below 7,000, Xero sinks, Afterpay falls
- 3 reasons why the Xero (ASX:XRO) share price selloff could be an opportunity
- Why American Pacific Borates, NAB, Perenti, & Xero are tumbling lower
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.
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