5 things to watch on the ASX 200 on Friday

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.15% to 7,241.8 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

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher this morning. Wall Street was closed for Thanksgiving but European markets ended higher thanks to the prospect of the US Federal Reserve slowing its rate hikes.

Oil prices mixed

Energy shares 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 up slightly to US$77.96 a barrel and the Brent crude oil price is down 0.35% to US$85.12 a barrel. Concerns over soaring COVID cases in China appear to be weighing on oil prices.

BHP shares downgraded

The BHP Group Ltd (ASX: BHP) share price may be fully valued now according to analysts at Goldman Sachs. This morning, the broker has downgraded the mining giant’s shares to a neutral rating with an improved price target of $42.90. Goldman made the move due to its “valuation vs. global peers and no upside to revised PT of A$42.9/sh.”

Gold price rises

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,754.9 an ounce. The gold price advanced after the US Fed hinted at slower rate hikes.

Rio Tinto named as a buy

Goldman Sachs may not be overly bullish on BHP right now, but it continues to rate Rio Tinto Limited (ASX: RIO) shares as a buy. This morning the broker has reiterated its buy rating with an improved price target of $114.70. It said: “We think the development of Rhodes Ridge has the potential to be significant for RIO’s Pilbara business as it could lift system capacity, utilise spare rail and port infrastructure and help close the FCF/t gap with BHP.”

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

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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 no position in any of the stocks mentioned. 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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