5 things to watch on the ASX 200 on Friday 23 October 2020 // The Motley Fool Australia

5 things to watch on the ASX 200 on Friday

Qantas Airways Limited (ASX:QAN) and Webjet Limited (ASX:WEB) shares will be on watch on the ASX 200 on Friday…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published October 23, 2020 6:31 am AEDT

On Thursday the S&P/ASX 200 Index (ASX: XJO) followed the lead of U.S. markets and dropped lower. The benchmark index fell 0.3% to 6,173.8 points.

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

Investor sitting in front of multiple screens watching share prices — Image source: Getty Images

ASX 200 expected to edge higher.

The Australian share market looks set to end the week in a positive fashion. According to the latest SPI futures, the ASX 200 is poised to open the day 4 points higher this morning. In late trade on Wall Street, the Dow Jones is up 0.45%, the S&P 500 has risen 0.4%, and the Nasdaq is up slightly.

Webjet update.

The Webjet Limited (ASX: WEB) share price will be on watch this morning following a trading update after the market close. The online travel agent revealed that bookings were still down materially, with the key WebBeds business currently reporting total transaction value (TTV) of 12% of 2019's levels. WebBeds needs to reach 45% of 2019's levels to be breakeven. One positive, though, is that Webjet's cash burn is lower than forecast.

Oil prices rebound.

Energy shares such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be on the rise today after oil prices rebounded despite a build-up in U.S. gasoline inventories. According to Bloomberg, the WTI crude oil price is up 1.5% to US$40.65 a barrel and the Brent crude oil price is up 1.8% to US$42.47 a barrel.

More annual general meetings.

Another group of companies are holding their (virtual) annual general meetings on Friday and could provide investors with trading updates. Among the companies scheduled to hold meetings are insurance giant Insurance Australia Group Ltd (ASX: IAG) and airline operator Qantas Airways Limited (ASX: QAN).

Gold price sinks lower

It could be a tough day of trade for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Friday after the gold price sank lower. According to CNBC, the spot gold price is down 1.2% to US$1,905.80 an ounce. This follows stronger than expected U.S. jobs data.

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