On Thursday the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its morning gains but still managed to hold onto some of them. The benchmark index rose 0.15% to 6,126.2 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to drop.
Unfortunately, the ASX 200 could end the week on a disappointing note on Friday. According to the latest SPI futures, the benchmark index is expected to fall 11 points or 0.2% at the open. This is despite the majority of stocks in the United States pushing higher overnight. The Dow Jones rose 0.6% and the S&P 500 climbed 0.2%, whereas the Nasdaq fell 0.35%.
Oil prices tumble.
Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 0.85% to US$43.02 a barrel and the Brent crude oil price is down 1.1% to US$45.15 a barrel. This is despite a massive hurricane in the Gulf of Mexico forcing oil rigs and refineries to shut down on Thursday.
NEXTDC hits its guidance.
The NEXTDC Ltd (ASX: NXT) share price will be on watch after hitting its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) guidance in FY 2020. The data centre operator delivered a 14% or $26 million increase in revenue to $205.2 million. This was at the high end of its guidance range of $200 million to $206 million. It was the same for its underlying EBITDA, which came in $19.5 million or 23% higher year on year to $104.6 million. More solid growth is forecast in FY 2021.
Gold price softens.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure today after a pullback in the gold price. According to CNBC, the spot gold price is down 0.85% to US$1,935.60 an ounce. The precious metal came under pressure after the U.S. dollar and Treasury yields rose after Federal Reserve Chair Jerome Powell shifted the central bank’s inflation target.
Costa half year update.
The Costa Group Holdings Ltd (ASX: CGC) share price will be on watch today when it releases its half year results. According to a note out of Goldman Sachs, it expects Costa’s earnings before interest, tax, depreciation, and amortisation before self-generating and regenerating assets, leasing, and material items (EBITDA-SL) to come in at $108 million. This will be a 31% increase on the prior corresponding period.
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- Is it finally time for ASX investors to buy gold?
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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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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