On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank notably lower. The benchmark index dropped 1.4% to 7,019.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to end the week deep in the red following a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.8% lower this morning. In the US, the Dow Jones was down 1.9%, the S&P 500 fell 2.4%, and the Nasdaq sank 2.75%. Investors were nervous ahead of the release of key US inflation data.

Xero remains a buy

The Xero Limited (ASX: XRO) share price is good value according to analysts at Goldman Sachs. In response to the company’s subscription price increases, the broker has retained its buy rating and $118.00 price target. Goldman said: “We remain confident Xero will be able to execute on these increases while preserving its existing subscriber base, noting their strong track record in putting through increases while driving churn lower.”

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.8% to US$121.13 a barrel and the Brent crude oil price is down 0.7% to US$122.70 a barrel. News of new lockdowns in Shanghai weighed on prices.

South32 rated as a buy

The South32 Ltd (ASX: S32) share price could be heading higher from current levels according to Goldman Sachs. This morning the broker reiterated its conviction buy rating on its shares and lifted its price target to $5.90. Goldman has boosted its valuation after updating its estimates to reflect its latest commodity forecasts.

Gold price drops

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a soft finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.35% to US$1,849.7 an ounce. Stronger bond yields put pressure on the safe haven asset.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• What’s driving the Beach Energy share price to a new 52-week high today?
• Woodside share price soars again despite CEO forecasting oil prices will pull back
• Here are the 3 most traded ASX 200 shares on Thursday
• 3 ASX 200 shares rocking new 52-week highs on Thursday
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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