It was a disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. After a positive start the benchmark index gave back its gains and fell 0.7% to 6,010.9 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rise.
The ASX 200 index looks set to rise this morning despite a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 14 points or 0.25% higher this morning. On Wall Street the Dow Jones fell 0.5%, the S&P 500 dropped 0.35%, and the Nasdaq tumbled 0.7% lower.
Oil prices drop.
Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.2% to US$40.72 a barrel and the Brent crude oil price has fallen 1.15% to US$43.29 a barrel. Oil prices dropped lower after OPEC+ agreed to ease their output curbs.
Gold price falls.
It could be a tough end to the week for gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price below the US$1,800 an ounce level. According to CNBC, the spot gold price fell over 1% to US$1,796.00 an ounce after the European Central Bank kept its monetary policy on hold.
Medibank rated as a sell.
The Medibank Private Ltd (ASX: MPL) share price could be heading lower from here according to analysts at Goldman Sachs. This morning the broker retained its sell rating and $2.83 price target on the private health insurer’s shares. Goldman continues to believe its shares are overvalued considering its near term prospects.
QBE rated as a buy.
One insurance company that analysts at Goldman Sachs are positive on is QBE Insurance Group Ltd (ASX: QBE). This morning the broker retained its conviction buy rating and $10.80 price target on the company’s shares. It believes there are medium-term opportunities for QBE that could generate value for investors.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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