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The Insurance Australia Group Ltd (ASX: IAG) share price is on the move on Friday morning.

At the time of writing, the insurance giant’s shares are up slightly to $5.06.

Why is the IAG share price rising?

The catalyst for the rise in the IAG share price today has been the release of a trading update at its annual general meeting.

According to the release, the insurance giant has started FY 2022 positively and remains on track to achieve its previously announced guidance of low single-digit gross written premium (GWP) growth.

IAG’s Managing Director and CEO, Nick Hawkins, commented: “The first quarter of the year has started well, and I affirm guidance for FY22 that we provided at the results in August. We recorded mid single-digit gross written premium growth in the quarter. GWP guidance remains ‘low single-digit growth’ for the full year.”

Mr Hawkins notes that this guidance factors in portfolio management in Intermediated Insurance Australia. He expects this to constrain volume growth over the balance of the year.

In addition, the CEO revealed that the company is on track to achieve its reported insurance margin guidance of 13.5 -15.5%.

He said: “IAG is also on track to meet reported insurance margin guidance of 13.5 -15.5%. We have observed lower motor vehicle claims frequency, driven by the lockdowns in Australia and New Zealand. This has been partly offset by inflationary pressure on claims costs and conservative reserving assumptions in our motor and home portfolios, and recognises increased uncertainty in claims inflation as lockdowns end.”

One thing that dragged slightly on its performance during the first quarter was its natural perils costs due partly to the Victorian earthquake. Though, positively, its natural perils allowance of $765 million for FY 2022 remains unchanged at this time.

The IAG share price is up almost 7% in 2021.

The post IAG (ASX:IAG) share price rises following solid start to FY22 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Cryptocurrencies continue to have a wild trading week, and Thursday there are sharp moves both moves higher and lower. According to Coinbase‘s price chart, Bitcoin (CRYPTO: BTC) is down 4.5% over the past 24 hours as of 11:30 a.m. EDT and Dogecoin (CRYPTO: DOGE) is off 2.5%, while Ethereum (CRYPTO: ETH) is up 1.6%. 

Taking a bit of a step back to price movements over the past week, the picture looks little better for cryptocurrencies. Bitcoin is up 9% over the past week, Ethereum is up 11.7%, and Dogecoin is up 4.1%, which shows a much more bullish picture than the price movements today. 

So what

Bitcoin is coming off highs from Wednesday that were driven by the ProShares Bitcoin Strategy ETF (NYSEMKT: BITO) officially reaching the market. Investors have been bidding up Bitcoin, in particular, in anticipation of this exchange-traded fund, and that’s pulled a number of cryptocurrencies higher today. 

In a sign of just how critical this ETF has been to the crypto trade short term, Bitcoin peaked near $67,000 just an hour after the market opened on Wednesday and has been falling ever since. For Bitcoin at least, this looks like investors buying the rumor and selling the news. 

The general trend for all cryptocurrencies over the past week has been higher, and that’s in large part because investors see advances like ETFs and regulation from the Securities and Exchange Commission as positive moves for the adoption of cryptocurrencies long term. The industry has been looking for broader legitimacy, and if more and more investors and institutions have exposure to crypto, it will make it harder to squash the industry, as China has tried to do. 

Now what

This week has potentially been a significant one for legitimizing cryptocurrency long term. If Bitcoin and other cryptocurrencies are traded in commonly known products like ETFs, it will bring more people into the market, which would be good for the industry. That doesn’t mean prices will continue to go up, but it may mean that the industry has a little more staying power as more people are using these products. 

I will also point out that volatility like this has become normal for cryptocurrencies long term and especially over the past 12 months. So, this could simply be volatility based on speculation, and in the next few weeks we could see a sell-off as speculators leave the trade. 

No matter what is moving crypto today, I don’t think there’s a reason to change your investment thesis long term. The industry is still maturing and finding use cases and ways to add value. That will likely lead to more volatility as speculators enter and leave the market, but the important thing is building fundamental use cases or other sources of value for investors. ETFs are one sign that legitimacy is on the way and looks positive for cryptocurrencies long term. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why cryptocurrencies are moving wildly today appeared first on The Motley Fool Australia.

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Travis Hoium owns shares of Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Nuix Ltd (ASX: NXL) share price has continued its impressive run and is charging higher on Friday.

In morning trade, the investigative analytics and intelligence software provider’s shares are up 3.5% to $3.07

This means the Nuix share price is now up over 15% since this time last week.

Why is the Nuix share price rising?

The catalyst for the rise in the Nuix share price this morning has been news that the company has appointed both its new Chief Executive Officer (CEO) and Chief Financial Officer (CFO).

According to the release, Jonathan Rubinsztein will become the new Nuix CEO and Executive Director in January. This follows Mr Rubinsztein’s recently announced resignation from auto parts software company Infomedia Limited (ASX: IFM).

Supporting Mr Rubinsztein will be Chad Barton. He will become the permanent CFO after serving in the role on an interim basis.

“An important moment in Nuix’s history”

Nuix Chair, Hon Jeff Bleich, believes this is a key milestone for the company.

He commented: “This is an important moment in Nuix’s history, and Jonathan possesses an ideal set of qualities to lead the organisation into its next chapter. He brings a deep understanding of our requirements and opportunities, and a successful record of steering an ASX-listed entity through a period of transformation and growth.”

“The Board was especially impressed with Jonathan’s strategic thinking, global viewpoint, tremendous energy and commitment to culture and staying true to Nuix’s organisational mission. He displays a devotion to achieving standards that delight customers, and an acute awareness of the powerful role of the Nuix engine and the opportunities that come from this unique and world leading technology,” he added.

Mr Rubinsztein appears to be up for the challenge of leading Nuix.

He said: “There are few Australian-born technology companies that have achieved the kind of global leadership that Nuix has in its target markets. Certainly, it has faced some challenges in its early life as a listed entity, yet the potential and promise of the business remains enormous.”

The release also notes that the Nuix Board has agreed to permit Mr Rubinsztein to take up an intended non-executive director role for a smaller company in the technology services sector should its planned IPO occur later this year. The new CEO has confirmed that the obligations of this role will not compromise his ability to perform his duties at Nuix.

Despite its recent rebound, the Nuix share price is still down 65% in 2021.

The post Nuix (ASX:NXL) share price charges higher on CEO appointment appeared first on The Motley Fool Australia.

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Motley Fool contributor 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 and has recommended Infomedia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia has recommended Infomedia. 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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The Westpac Banking Corp (ASX: WBC) share price could be one to watch over the coming months. The bank released a media statement this week advising it is set to enter the buy-now, pay-later (BNPL) market.

At yesterday’s closing bell, Westpac shares ended the day up 0.58% to $25.83.

Westpac eyes BNPL industry

According to the release, Westpac will launch a new zero-interest credit card later this year. The bank says the digital card, called Flex, will provide customers with more flexibility and control in managing their money.

Flex allows customers to access up to $1,000 with no interest on purchases, no late payment fees, and no foreign currency fees. However, a flat $10 monthly fee will apply to customers who are unable to clear the balance from the previous month on time.

When available, customers can apply for the card either online or through their mobile banking app. Once approved, a digital card will be issued within minutes via their mobile wallet or banking app.

Card spend, repayments and reminders can be accessed from the online platform on which customers can choose their repayment cycle. This can be fortnightly or monthly.

To protect customers from fraud and scams, the card verification code (CVC) will automatically change every 24 hours.

Flex can be used anywhere MasterCard is accepted, either in-store or online.

Westpac stated that consumer research shows younger Australians are reluctant to use a traditional credit card, compared to older generations. The data also highlights that Generation Z and Millennials are mostly using all their banking tasks online to manage their cash flow and repayments.

Investors will be waiting with interest to see if the new card has any effect on Westpac shares.

Management commentary

Westpac chief executive consumer and business banking Chris de Bruin said:

We’re giving customers a new way to pay which is simple, flexible and fast, as well as a completely digital experience from start to finish.

Flex has been designed to meet the changing needs of younger customers who want greater control over their finances and are more likely to use their smart phone to manage their money. It’s easy to use and understand, and customers will be able to use Flex to make purchases in-store or online just like a regular card.

Westpac share price summary

Since the start of 2021, Westpac shares have rebounded to reach pre-COVID-19 levels. However, since mid-May, the upwards trajectory of its share price has slowed and began to stabilise. Nonetheless, the company’s shares are up more than 30% in 2021, reflecting confidence that the worst has passed.

Westpac commands a market capitalisation of around $94.76 billion, making it the third-largest bank on the ASX.

The post Own Westpac (ASX:WBC) shares? Here’s how the bank plans to compete with Afterpay appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Bruce Jackson.

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The Aussie Broadband Ltd (ASX: ABB) share price is in focus this morning after reports surfaced about a potential acquisition the company may be considering.

Aussie Broadband shares closed the session yesterday 6% in the red, coming immediately off its previous 52-week closing high on 18 October.

Here’s what we know the national telco carrier might be up to.

Speculation mounts on potential acquisition

There is intense speculation around Aussie Broadband putting the feelers out into the market, potentially in talks to acquire a complementary tuck-in to its portfolio.

The company gave hint at its acquisition plans earlier in the year when it raised $134 million through a share purchase plan and institutional placement.

As much was confirmed in the company’s quarterly activities report that was released two days ago, on the back of strong revenue and earnings growth for the quarter.

Aussie Broadband is purportedly in talks to buy IT telecommunications provider Over The Wire Holdings Ltd (ASX: OTW), a company that specialises in converged voice and data networks.

According to reporting from The Australian, the $1.1 billion valued Aussie Broadband is potentially targeting the $300 million telco company, as Aussie Broadband’s shares began to soar after first listing on the ASX around this time last year.

As it stands, Over the Wire currently trades at around 10 times EBITDA and just over 80 times earnings per share.

However, not all agree with the speculation. Some analysts reckon that a move to acquire Spirit Technology Solutions Ltd (ASX: ST1) may be a more pertinent one, given the synergies the business provides with Aussie Broadband’s operations, The Australian reports.

For instance, it is an IT support, cybersecurity and cloud storage business, whereas Over the Wire has more of a customer focus where it engages directly with customer sales.

Meanwhile Aussie Broadband is more a kind of broker and on-seller for the National Broadband Network (NBN).

What’s next for Aussie Broadband?

Whilst there is no concrete evidence the company is formally targeting Over the Wire, the pair has purportedly been in exclusive talks, according to sources familiar with the matter.

Yet, given management’s language on its quarterly update, combined with the capital injection obtained earlier this year, it stands to reason Aussie Broadband is on the acquisition trail.

Time will tell what unfolds from this particular situation, nonetheless, more will be revealed in the coming weeks and months regarding the potential acquisition.

Aussie Broadband share price snapshot

The Aussie Broadband share price has soared since listing around this time last year. It’s posted a year to date return of 135%, after rallying 134% in the last 12 months.

These returns have outpaced the S&P/ASX 200 index (ASX: XJO)’s climb of around 19% in that time.

The post Aussie Broadband (ASX:ABB) share price on watch amid acquisition rumours appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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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The Adore Beauty Group Ltd (ASX: ABY) share price could be one to consider because of several compelling reasons.

What does Adore Beauty do?

This company is described as Australia’s first beauty business that was focused on e-commerce.

Adore Beauty has evolved into an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of around 260 brands and 10,800 products.

Who rates Adore Beauty? It is rated as a buy by the broker Morgan Stanley. The broker has a price target on the Adore Beauty share price of $6. That suggests that Morgan Stanley believes Adore Beauty’s shares can rise by around 25% over the next 12 months, if the broker is right.

Here are three reasons to think about the beauty e-commerce ASX share:

Fast growth

The company has seen rapid growth in various parts of the business. It’s quickly becoming a much bigger business.

In FY21, it beat its guidance and grew revenue by 48% to $179.3 million. Active customers rose 39% to 818,000 whilst returning customers rose by 64%.

Profitability improved for the business – the gross profit margin increased 1.2 percentage points to 33.1%.

A recent update for the three months ending 30 September 2021 showed continuing double digit growth. Revenue went up 25% year on year to $63.8 million. Active customers increased 24% to 874,000, whilst returning customers grew 63% to 418,000. Adore Beauty said this showed it had strong customer retention.

FY21 demonstrated that those customers are spending more. Annual revenue per active customer increased 7% to $219 driven by the customer retention and increasing average order value.

Big total addressable market

Adore Beauty says that it is benefiting from the ongoing structural shift to online shopping, which has been further accelerated by the recent COVID-19 lockdowns.

The company says that it’s operating within a large and growing $11 billion market.

When the ASX e-commerce share gave its FY21 third quarter update, it said that the Australian beauty and personal care market is expected to grow at a compound annual growth rate of 26% to 2024. Online sales only comprised 11.4% of this beauty market. That’s a lower rate than markets like the US, the UK and China.

The company wants to capture as much of this opportunity as possible, which could help the Adore Beauty share price over time.

Investing for growth

Adore Beauty’s strategy is to grow its market share through “disciplined investment” to increase brand awareness, new customer acquisition and returning customer retention.

The company is investing in numerous areas to grow its online market leadership, and scaling its mobile app, loyalty program and grow its range.

It’s planning to launch its first private label brand in the first quarter of FY22.

What is the long-term benefit of growth? Adore Beauty says:

Given the predominately fixed nature of the business’ cost base, management expects scale benefits to increase operating leverage and deliver earnings before interest, tax, depreciation and amortisation (EBITDA) margin expansion in the longer-term as the company continues to grow revenue.

Adore Beauty expects to maintain an EBITDA margin of between 2% to 4% in the short to medium-term to achieve faster-than-market growth.

The post 3 reasons why the Adore Beauty (ASX:ABY) share price could be a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. 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 Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price will be on watch on Friday.

This follows the release of an announcement by the airline this morning.

Why is the Qantas share price on watch?

The Qantas share price could be on the move today after it revealed plans to ramp up its international travel plans.

According to the release, both Qantas and Jetstar will bring forward the restart of more international flights to popular destinations from Sydney and operate regular flights to Delhi. The latter will be the first commercial flights for Qantas between Australia and India in almost a decade.

In addition, Australia’s flag carrier airline will bring back two of its Airbus A380 aircraft earlier than planned. It is also in discussions with Boeing about accelerating the delivery of three brand new 787 Dreamliners, which have been in storage for most of the pandemic.

Qantas made the decision in response to the Federal and New South Wales governments confirming that international borders would reopen from 1 November 2021. It also expects the decision by the NSW Government to remove quarantine requirements for fully vaccinated arrivals to significantly increase travel demand.

In light of the above, all Qantas and Jetstar workers based in Australia and New Zealand who are currently stood down are expected to return to work by early December. This includes around 5,000 employees linked to domestic flying and around 6,000 linked to international flying.

Management commentary

Qantas’ CEO, Alan Joyce, commented: “We know that Australians are keen to get overseas and see friends and family or have a long awaited holiday, so bringing forward the restart of flights to these popular international destinations will give customers even more options to travel this summer.”

“We’ve said for months that the key factor in ramping up international flying would be the quarantine requirement. The decision by the NSW Government to join many cities from around the world by removing quarantine for fully vaccinated travellers means we’re able to add these flights from Sydney much earlier than we would have otherwise.”

“We hope that as vaccination rates in other states and territories increase, we’ll be able to restart more international flights out of their capital cities. In the meantime, Sydney is our gateway to the rest of the world.”

My Joyce also revealed that demand for international travel has been strong in recent weeks.

He commented: “In recent weeks, sales on international flights to and from Sydney have outstripped sales on domestic flights, which shows how important certainty is to people when making travel plans.”

The Qantas share price is up 16% in 2021.

The post Qantas (ASX:QAN) share price on watch after ramping up international travel plans appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Bruce Jackson.

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Is it possible that the Altium Limited (ASX: ALU) share price could fall to just $27 by Christmas?

The electronic PCB software business would end up falling more than 25% if it ended up going that low.

Brokers often come out with price targets for the businesses that they monitor. A price target is where the broker thinks that the business could go over the next 12 months. Not necessarily where it’s going to be by Christmas.

One of the brokers that covers Altium is Macquarie Group Ltd (ASX: MQG), which currently rates the company as ‘underperform’.

Why is Macquarie negative on the Altium share price?

Macquarie has a price target on Altium of $27.10. That suggests that Altium shares could drop by around 27% over the next year, if the broker is right.

The broker notes that the company didn’t meet expectations for FY21 and it thinks that the company is going to be at the lower end of its revenue guidance and that its goals may take longer to achieve.

What happened in FY21?

Excluding the divested TASKING business, revenue rose 6% to US$180.2 million. However, operating expenses grew 12% to US$120.2 million.

That fact that expenditure grew faster than revenue meant that continuing earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 3% to US$60 million.

Profit before tax dropped 7% to US$47.7 million, whilst profit after tax soared 79% to US$35.3 million.

Operating cashflow increased 9% to US$61.7 million. The board decided to grow the annual dividend by 3% to AU$0.40 per share.

However, there were several areas of growth that Altium pointed to.

It said that it saw “strong growth” in annual recurring revenue (ARR) of 29%. The business said that recurring revenue was 65% of total revenue, up from 59% one year earlier, with “strong growth” in term-based licenses, which management said was a positive for future recurring revenue.

Second half continuing business revenue increased 16%, outpacing the first half. Octopart revenue grew by 42% to US$27 million for the full year. The Chinese division saw second half revenue growth of 47%, to deliver full year double digit growth.

Its subscriber growth was 7% to 54,394 subscribers.

Thoughts on the future

The Altium share price may be influenced by the company’s outlook.

Management believe that the accelerating adoption of its cloud platform Altium 365 is strengthening its market position.

Altium says that Altium 365 enhances the value of its maintenance subscription to its customers and delivers software as a service-like (SaaS) subscription benefits to the company, reducing subscription churn for dominance.

Another benefit of the cloud platform is that the rapid adoption of Altium 365 is catching the attention of the industry and attracting strategic partners that could help it accelerate its vision to digitally connect electronic design to the broader engineering ecosystem.

The company is expecting to grow revenue by between 16% to 20%. It says it’s returning to “strong pre-COVID growth”, which it said was even more significant when considering its business model transition and move to the cloud.

Its long-term target is US$500 million of revenue.

What is the Altium share price valuation?

Based on Macquarie’s numbers, it thinks that Altium shares are valued at 76x FY22’s estimated earnings and 68x FY23’s estimated earnings.

However, there are more optimistic price targets out there. For example, the broker Citi has a price target of $35.40 on Altium.

The post Can the Altium (ASX:ALU) share price fall to $27 by Christmas? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium and Macquarie Group Limited. 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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If you’re looking to boost your income with some dividend shares, then you might want to look at the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

The Charter Hall Social Infrastructure REIT is a real estate investment trust that invests in social infrastructure properties. These are properties with low competition and substitution risk and long leases such as childcare centres and government sites.

Demand for its properties has been very strong, leading to a sky high occupancy rate, favourable revaluations, and strong profit growth. For example, in FY 2021, the company reported a 103% increase in statutory profit to $174.1 million. This allowed Charter Hall Social Infrastructure REIT to pay an ordinary dividend of 15.7 cents per share in FY 2021.

Pleasingly, management expects further growth in FY 2022. Its guidance reveals that it expects to pay 16.7 cents per share dividend, which represents a 6.4% increase year on year. Based on the current Charter Hall Social Infrastructure REIT share price of $3.75, this will mean a yield of 4.5%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to look at is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets that are leased to some of the biggest players in the agricultural sector on long term agreements.

As these long leases have fixed rental increases built into them, the company appears well-positioned to grow its rental income at a consistently solid rate over the next decade. This gives management great visibility with its future earnings, leaving it well-placed to achieve its distribution growth target of 4% per annum.

That certainly appears likely to be the case in FY 2022. Rural Funds advised that it intends to reward its shareholders with a distribution of 11.73 cents per share this year. This will be up 4% on FY 2021’s distribution. Based on the current Rural Funds share price of $2.80 this will mean a yield of 4.2%.

The post 2 quality ASX dividend shares with 4%+ yields appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains to finish the day just a fraction higher. The benchmark index rose slightly to 7,415.4 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to end the week on a subdued note. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher. This follows a mixed night of trade on Wall Street, which late on sees the Dow Jones down 0.1%, the S&P 500 up 0.2%, and the Nasdaq up 0.6%.

BHP and Rio Tinto likely to fall

The BHP Group Ltd (ASX: BHP) share price and the Rio Tinto Limited (ASX: RIO) share price could fall heavily today. Both mining giants saw their London and New York listed shares tumble close to 4% during overnight trade. This may be due partly to a 5.8% decline in the spot iron ore price to US$116.93 a tonne according to Metal Bulletin.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a poor end to the week after oil prices fell. According to Bloomberg, the WTI crude oil price is down 1% to US$82.58 a barrel and the Brent crude oil price is down 1.3% to US$84.71 a barrel. Prices eased after some investors took profits amid signs the rally is looking overstretched.

South32 shares still a buy

The South32 Ltd (ASX: S32) share price remains great value following its quarterly update according to analysts at Goldman Sachs. This morning the broker retained its conviction buy rating and $4.40 price target. Goldman notes that its production was in line with the broker’s expectations and was pleased to see guidance left unchanged.

Gold price flat

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price traded flat. According to CNBC, the spot gold price is fetching US$1,784.5 an ounce. Traders appear undecided in which direction the precious metal is going next.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Why did the Magellan (ASX:MFG) share price smash the ASX 200 today?
• Here are the top 10 ASX shares today
• ASX 200 energy shares take a breather, broker sees “lot of upside risk” for oil
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Santos (ASX:STO) share price wobbles despite record quarterly sales revenue

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Bruce Jackson.

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