5 things to watch on the ASX 200 on Friday

BHP Group Ltd (ASX:BHP) and Blackmores Limited (ASX:BKL) shares will be on watch on the ASX 200 on Friday. Here’s why…

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged notably higher. The benchmark index rose 0.8% to 7,055.4 points.

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

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% lower this morning. This follows a poor night of trade on Wall Street, which saw the Dow Jones, S&P 500, and Nasdaq all fall 0.9%. This follows reports that President Biden is eyeing a capital gains tax hike in the US.

Oil prices rebound

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 0.5% to US$61.63 a barrel and the Brent crude oil price is up 0.4% to US$65.57 a barrel. News that Libya is reducing production gave prices a lift.

Gold price softens

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price softened. According to CNBC, the spot gold price is down 0.5% to US$1,784.30 an ounce. Positive economic data put pressure on the precious metal.

Blackmores rated as neutral

The Blackmores Limited (ASX: BKL) share price may be fully valued according to Goldman Sachs. This morning the broker responded to its shareholder briefing by reaffirming its neutral rating and cutting its price target on the health supplements company’s shares to $74.80. Goldman notes that its short-term outlook remains uncertain due to ongoing discounting pressure in the market and uncertainty in travel recovery.

Iron ore price pulls back

The shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could come under a spot of pressure today after the iron ore price pulled back overnight. According to Metal Bulletin, the benchmark iron ore price dropped 2.4% to US$183.62. Both mining giants’ US-listed shares fell around 2% last night.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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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