On Thursday the S&P/ASX 200 Index (ASX: XJO) returned to form and raced notably higher. The benchmark index climbed 1% to 5,872.9 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to fall.
It looks set to be a disappointing end to the week for the ASX 200 despite a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.45% lower this morning. Overnight the Dow Jones rose 0.1%, the S&P 500 climbed 0.5%, and the Nasdaq stormed 1.4% higher.
Oil prices sink lower
Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could tumble lower on Friday after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 3.9% to US$38.65 a barrel and the Brent crude oil price has dropped 3.5% to US$40.83 a barrel. A weak demand outlook and higher than expected OPEC production weighed on prices.
Gold price rises.
Gold miners such as Evolution Mining Ltd (ASX: EVN) Northern Star Resources Ltd (ASX: NST) could end the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price is up 0.8% to US$1,910.60 an ounce amid U.S. stimulus hopes.
Tech shares could storm higher.
It could be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) after their U.S. peers stormed higher overnight. On Wall Street the tech-focused Nasdaq index recorded a strong 1.4% gain. The local sector has a tendency to follow the lead of the Nasdaq.
Mesoblast on watch.
It will be worth keeping an eye on the Mesoblast limited (ASX: MSB) share price on Friday. While the company isn't expecting to make an announcement on whether the US FDA has approved its remestemcel-L (RYONCIL) product for paediatric patients with steroid-refractory acute graft versus host disease until Monday, there's always a chance the FDA will move quicker than expected and give its verdict before the market open. The Mesoblast share price will remain halted until its release.
