It was a very disappointing day of trade for the S&P/ASX 200 Index (ASX: XJO) on Thursday. The benchmark index followed the lead of U.S. markets and dropped 1.6% to 5,960.3 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rebound.
It looks set to be a better day for the Australian share market after Wall Street rebounded overnight. According to the latest SPI futures, the ASX 200 is poised to open the day 36 points or 0.6% higher this morning. In late trade in the United States, the Dow Jones is up 0.95%, the S&P 500 has risen 1.7%, and the Nasdaq has jumped 2.2%. The latter could be good news for local tech shares like Afterpay Limited (ASX: APT).
ResMed Q1 update.
The ResMed Inc (ASX: RMD) share price could be on the move today when it hands in its first quarter update. Earlier this week, analysts at Macquarie warned that the company’s device revenue could be lower this quarter due to softer than expected ventilator volumes. It expects ResMed to report revenue of US$714 million for the first quarter.
Oil prices continue to weaken
The share market may be rebounding, but the same cannot be said for oil prices which have continued to weaken. This could be bad news for the likes of Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) on Friday. According to Bloomberg, the WTI crude oil price is down 2.9% to US$36.30 a barrel and the Brent crude oil price is down 3.5% to US$37.75 a barrel. Oil prices are on track to have their worst week since April.
Janus Henderson update.
The Janus Henderson Group CDI (ASX: JHG) share price will be one to watch on Friday. Its US-listed shares dropped lower overnight following the release of its third quarter update. The fund manager reported a 6% increase in assets under management to US$358.3 billion. While this was positive, it was all down to favourable market movements. Janus Henderson recorded net outflows of US$2.9 billion for the quarter.
Gold price lower.
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued end to the week after the gold price softened again. According to CNBC, the spot gold price has dropped 0.5% lower to US$1,869.40 an ounce. This was driven by a strengthening U.S. dollar.
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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 and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk and Bravura Solutions Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended PUSHPAY FPO NZX and ResMed Inc. 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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