On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form but gave back the majority of its gains late on to end just a few points higher at 6,885.9 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% lower this morning. This follows a poor night on Wall Street, which in late trade sees the Dow Jones down 0.35%, the S&P 500 down 0.45%, and the Nasdaq down 0.7%.
Cochlear half year update
The Cochlear Limited (ASX: COH) share price will be one to watch this morning when it releases its half year results. According to CommSec, due to COVID headwinds, the hearing solutions company is expected to report a net profit after tax of $64.3 million. This will be down roughly 50% on the prior corresponding period.
Oil prices pull back
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.9% to US$59.96 a barrel and the Brent crude oil price is down 1.5% to US$63.37 a barrel. This appears to have been driven by profit taking by traders after a series of solid gains.
Gold price flat
Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch after a flat night of trade for the gold price. According to CNBC, the spot gold price is flat at US$1,773.60 an ounce. The gold price firmed after US treasury yields eased overnight.
CSL downgraded
The CSL Limited (ASX: CSL) share price could come under pressure today after analysts at Goldman Sachs downgraded the biotherapeutics company’s shares. According to the note, the broker has downgraded CSL shares to a neutral rating with a $305.00 price target. Its analysts don’t believe its valuation is reflecting of the ongoing uncertainties it is facing. It added: “With our new forecasts driving (3)-(5)% earnings downgrades from FY22-23, we expect three consecutive years of single-digit earnings growth.”
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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