On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.5% to 6,964 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 jump
The Australian share market looks set to end the week with a very strong gain after US inflation came in softer than expected. According to the latest SPI futures, the ASX 200 is expected to open 141 points or 2% higher this morning. In late trade in the United States, the Dow Jones is up 3.2%, the S&P 500 has risen 4.7%, and the Nasdaq has stormed 6.3% higher.
Oil prices rise
Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$86.96 a barrel and the Brent crude oil price is up 1.6% to US$94.12 a barrel. Oil prices rebounded on the inflation news.
Xero remains a buy
The Xero Limited (ASX: XRO) share price was sold off on Thursday after the companyâs half year earnings fell short of expectations and its CEO quit. Goldman Sachs sees this as a buying opportunity and has reiterated its buy rating with an improved $115.00 price target. Goldman was pleased with Xero’s exit ARPU metric.
Gold price jumps
Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a positive end to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 2.35% to US$1,754.60 an ounce. Traders were buying gold on the belief that the US Federal Reserve would slow its interest rate hikes following the inflation reading.
Breville named as a buy
The Breville Group Ltd (ASX: BRG) share price could be in the buy zone according to Goldman Sachs. Its analysts have reiterated their buy rating with a $24.70 price target following the appliance makerâs trading update. Goldman said: âWe reiterate our Buy rating for BRG as we believe the business remains defensive with >60% of sales exposed to US and APAC regions where demand remains resilient to date.â
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
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- Amidst the ongoing tech stock wreck, value shares are everywhere. Thereâs just one catchâ¦
- Here are the 3 most traded ASX 200 shares on Thursday
- Donât panic! Here are 7 reasons we can avoid a recession: AMP
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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