5 things to watch on the ASX 200 on Friday

Macquarie Group Ltd (ASX:MQG) and National Australia Bank Ltd (ASX:NAB) 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 out of form and tumbled lower. The benchmark index fell 0.5% to 7,061.7 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 0.9%, the S&P 500 climb 0.8%, and the Nasdaq rise 0.4%.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week on a low note after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$64.86 a barrel and the Brent crude oil price is down 1.05% to US$68.24 a barrel. Concerns about rising COVID-19 cases in India is weighing on prices.

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price will be one to watch today when it hands in its full year results. In February, the investment bank revealed that it expects to deliver a profit result that is approximately 5% to 10% higher than FY 2020. All eyes will be on its guidance for FY 2021, with experts suggesting that it will have no choice but to guide to a decline in earnings in FY 2022.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week strongly after the gold price jumped higher. According to CNBC, the spot gold price is up 1.7% to US$1,814.90 an ounce. Weakness in the US dollar and bond yields gave the precious metal a lift.

NAB rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price is good value according to one leading broker. According to a note out of Goldman Sachs, its analysts have responded to NAB’s half year results by putting a conviction buy rating and $29.97 price target on its shares. This implies potential upside of ~13% over the next 12 months excluding dividends.

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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 Macquarie Group 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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