5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed deep into the red. The benchmark index lost 2% of its value and dropped to 6,845.6 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 rise

The Australian share market looks set to end the week on a positive note. This follows a volatile but decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 22 points or 0.3% higher this morning. In the United States, the Dow Jones rose 0.45% and the S&P 500 rose 0.3%, but the Nasdaq edged 0.25% lower. At one stage the all three indices were deep in the red.

Oil prices continue to drop

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell again overnight. According to Bloomberg, the WTI crude oil price is down 3.7% to US$86.26 a barrel and the Brent crude oil price is down 3.9% to US$91.94 a barrel. Recession fears and lockdowns in China are weighing on prices.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend on Friday and could trade lower. This includes fuel retailer Ampol Ltd (ASX: ALD), supermarket operator Coles Group Ltd (ASX: COL), automotive retailer Eagers Automotive Ltd (ASX: APE), and mining and mining services company Mineral Resources Limited (ASX: MIN).

Gold price sinks

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult finish to the week after the gold price sank overnight. According to CNBC, the spot gold price is down 1.2% to US$1,706.70 an ounce. A stronger US dollar and rate hike fears appear to be weighing on the precious metal.

Rio Tinto rated as a buy

The Rio Tinto Limited (ASX: RIO) share price could be great value according to analysts at Goldman Sachs. This morning the broker responded to news that the mining giant has agreed to acquire Turquoise Hill by retaining its buy rating and $121.50 price target. The broker said: “Agreement in principle for TRQ below our valuation, implies ~0.7xNAV.”

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

• How do IGO shares compare to Mineral Resources following earnings season?
• Blocked again: Here’s what happened to ASX 200 shares last time the Suez was cut off
• Here are the top 10 ASX 200 shares today
• Is the Endeavour share price a bargain after its big tumble in August?
• Rio Tinto share price dips despite $4.9b Turquoise Hill deal

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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