5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and raced notably higher. The benchmark index rose 1.2% to 7,280.4 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 poised to rise

The Australian share market looks set to end the week with a solid gain following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.45% higher this morning. In late trade in the United States, the Dow Jones is up 0.8%, the S&P 500 has climbed 0.55%, and the Nasdaq has risen 0.7%. This was driven by the softening of inflation in the United States.

Oil prices charge higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$78.68 a barrel and the Brent crude oil price is up 1.95% to US$84.20 a barrel. Demand hopes boosted prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price could be heading a lot higher from current levels. That’s the view of analysts at Goldman Sachs, which have reiterated their buy rating and $15.20 price target on the lithium miner’s shares today. It said: “We prefer Allkem (Buy) with optionality across the Americas and Australia growing equity LCE production >4x by FY27E and at a discount to peers.”

Gold price jumps

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.2% to US$1,900.9 an ounce. Softening US inflation has sparked hopes that the US Federal Reserve will slow its rate hikes.

Fortescue named as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price remains severely overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a trimmed price target of $13.40. This implies potential downside of 41% from current levels.

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

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Power up: 3 best ASX 200 energy shares of 2022
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Can Woodside shares keep delivering stellar gains in 2023?

Motley Fool contributor James Mickleboro has positions in Allkem. 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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