On Thursday the S&P/ASX 200 Index (ASX: XJO) returned to form and stormed higher. The benchmark index jumped 0.7% to 6,051.1 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to slide.
The ASX 200 index looks set to drop lower on Friday after a mixed night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 20 points or 0.3% at the open. On Wall Street the Dow Jones dropped 0.85%, the S&P 500 fell 0.4%, and the Nasdaq pushed 0.4% higher.
Tech shares on watch.
Tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) could be on the rise on Friday after their U.S. counterparts drove the Nasdaq index higher. In addition to this, after the market close on Thursday, both Amazon and Facebook have released strong quarterly results and have seen their shares surge higher in after hours trade.
Oil prices tumble.
Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure today after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 2.1% to US$40.42 a barrel and the Brent crude oil price has fallen 0.8% to US$43.39 a barrel. Oil was sold off after the release of weak U.S. economic data.
Gold price weakens.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could finish the week in a subdued fashion after the gold price weakened. According to CNBC, the spot gold price is down 0.35% to US$1,946.70 an ounce. This appears to have been driven by profit taking after some very strong gains by the precious metal this month.
Commonwealth Bank given sell rating.
The Commonwealth Bank of Australia (ASX: CBA) share price is overvalued according to analysts at Goldman Sachs. This morning the broker retained its sell rating and $65.25 price target on the banking giant’s shares. This follows the announcement of $300 million of pre-tax customer remediation provisions relating to its advice businesses.
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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 Xero. The Motley Fool Australia owns shares of Appen Ltd. 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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