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5 things to watch on the ASX 200 on Friday

On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed through the 6,000-point level. The benchmark index jumped 1.65% to 6,032.7 points.

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

ASX 200 expected to rise again.

The ASX 200 looks set to end the week on a high on Friday. According to the latest SPI futures, the benchmark index is expected to rise 36 points or 0.6% at the open. This follows a solid night of trade on Wall Street which saw the Dow Jones rise 0.35%, the S&P 500 climb 0.45%, and the Nasdaq push 0.5% higher. U.S. equities pushed higher after a better than expected U.S. jobs report.

Oil prices push higher.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could end the week on a high after oil prices continued their recovery. According to Bloomberg, the WTI crude oil price is up 1.2% to US$40.30 a barrel and the Brent crude oil price is 1.7% higher to US$42.75 a barrel. Solid U.S. economic data drove oil prices higher overnight.

Gold price recovers.

Gold miners including Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price has risen 0.4% to US$1,787.70 an ounce despite the strong economic data.

Magellan rated neutral.

The Magellan Financial Group Ltd (ASX: MFG) share price could be overvalued according to one leading broker. A note out of Goldman Sachs reveals that its analysts have retained their neutral rating and $51.69 price target on the fund manager’s shares. Goldman notes that Magellan’s shares are currently trading at 23.5x FY 2021 earnings. This is ahead of its five-year average of 20x. Magellan share price closed at $61.68 on Thursday.

Aristocrat and Reliance block sales.

Aristocrat Leisure Limited (ASX: ALL) and Reliance Worldwide Corporation Ltd (ASX: RWC) shares will be on watch on Friday after reports of large block trades. According to the AFR, someone was selling $127 million worth of Aristocrat shares yesterday afternoon. After which, an investor offloaded the equivalent of a 4.4% stake in Reliance Worldwide

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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 Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. 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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