5 things to watch on the ASX 200 on Friday

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and charged higher. The benchmark index rose 1% to 6,889.7 points.

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

ASX 200 expected to rise again

The Australian share market looks set to end the week on a positive note following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 45 points or 0.65% higher this morning. In the United States, the Dow Jones rose 1%, the S&P 500 climbed 1.2%, and the Nasdaq pushed 1.1% higher.

Oil prices mixed

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.2% to US$97.08 a barrel and the Brent crude oil price is up 0.8% to US$107.51 a barrel. Recession fears weighed on prices.

AVZ shares to finally return?

AVZ Minerals Ltd (ASX: AVZ) shares are scheduled to return from their lengthy suspension on Friday morning. The embattled lithium developer’s shares have been out of action for over two months as it battles legal action from a Chinese company that claims it owns a stake in the Manono Lithium project.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.95% to US$1,752.60 an ounce. Concerns over the state of the US economy boosted demand for gold.

Fortescue rated as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price remains overvalued despite its record iron ore shipments. That’s the view of analysts at Goldman Sachs, which have reiterated their sell rating and cut their price target on the mining giant’s shares to $12.70. The broker explained: “The stock is trading at a significant premium to BHP & RIO; c. 1.5x NAV vs. RIO & BHP at c. 0.8x & 1x NAV, c. 5.5x EBITDA (vs. BHP on 5x & RIO on c. 3.5x), and c. 5% FCF vs. BHP & RIO on c. 8-12%.”

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

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