On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped lower. The benchmark index fell 0.7% to 6,745.9 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 to fall
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 trades sees the Dow Jones down 0.2%, the S&P 500 down 1.1%, and the Nasdaq sinking 2.5% lower. Rising bond yields have spooked investors again.
ASX 200 tech shares under pressure
It looks set to be a difficult end to the week for Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Friday. This follows another selloff of US tech stock overnight after US treasury yields surged higher. According to CNBC, the 10-year Treasury yield surged to 14-month high of 1.75% and the 30-year rate topped 2.5%. Given how the local tech sector tends to follow the Nasdaq’s lead, which is down 2.5%, this doesn’t bode well for today’s trading session.
Oil prices crash
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are likely to end the week deep in the red after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price is down 8.1% to US$59.34 a barrel and the Brent crude oil price has fallen 8% to US$62.56 a barrel. A rising US dollar, a build-up of US crude and fuel inventories, and concerns over a stuttering vaccine rollout were behind the decline.
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after a positive night of trade for the gold price. According to CNBC, the spot gold price is up 0.4% to US$1,733.90 an ounce. The precious metal rose despite bond yields hitting new 14-month highs.
Webjet shares given buy rating
The Webjet Limited (ASX: WEB) share price could be going higher from here according to Goldman Sachs. Following its investor update yesterday, the broker has reiterated its buy rating and $7.36 price target. Goldman notes that Webjet is aiming to grow its WebBeds business materially more than it was forecasting. It notes management’s target of a TTV of $10 billion, compared to its forecast of $3.9 billion.
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More reading
- 2 ASX growth shares for smart investors to buy
- ASX 200 drops, Webjet reveals B2B plan, Cimic wins again
- Top brokers name 3 ASX shares to sell today
- Hydrogen far from ‘fool cells’: EV trends and the major ASX players
- Afterpay (ASX:APT) share price drops on scathing broker note
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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.
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