5 things to watch on the ASX 200 on Friday

Fortescue Metals Group Limited (ASX:FMG) and ResMed Inc (ASX:RMD) shares will be on watch on the ASX 200 on Friday…

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was a sea of red after having its worst day in months. The benchmark index fell 1.9% to 6,649.7 points.

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

ASX 200 poised to rebound

The ASX 200 looks set to rebound strongly from Thursday’s selloff. According to the latest SPI futures, the ASX 200 is poised to open the day 95 points or 1.45% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.8%, the S&P 500 is up 1.9%, and the Nasdaq index is 1.5% higher.

ResMed Q2 update

The ResMed Inc (ASX: RMD) share price will be one to watch this morning when it releases its second quarter update. The market is expecting the medical device company to report another year on year jump in ventilator sales because of the pandemic. All eyes will be on how its core sleep treatment business is performing in the current environment.

Oil prices fall

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.7% to US$52.49 a barrel and the Brent crude oil price has fallen 0.3% to US$55.65 a barrel. Demand fears and a stronger U.S. dollar weighed on prices.

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price dropped lower again. According to CNBC, the spot gold price is down 0.25% to US$1,840.70 an ounce. The precious metal came under pressure after safe-haven appeal shifted to the US dollar.

Fortescue given neutral rating

The Fortescue Metals Group Limited (ASX: FMG) share price could be fully valued according to one leading broker. Analysts at Goldman Sachs have responded to its second quarter update by reaffirming their neutral rating and $19.70 price target. The broker is, however, forecasting a very attractive 11% dividend yield for FY 2021.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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