5 things to watch on the ASX 200 on Friday

Afterpay Ltd (ASX:APT) and Webjet Limited (ASX:WEB) 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 back on form and charged notably higher. The benchmark index rose 1.3% to 7,019.6 points.

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

ASX 200 expected to rise again

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones rise 0.55%, the S&P 500 climb 1.1%, and the Nasdaq storm 1.8% higher.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week in the red after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 2.1% to US$62.05 a barrel and the Brent crude oil price is down 2.6% to US$64.96 a barrel. Traders were selling oil amid news that Iranian sanctions could be lifted and supply could soon return.

Tech shares on watch

It could be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Friday after their US counterparts stormed higher overnight. As the local tech sector tends to follow the lead of the Nasdaq index, its 1.8% gain on Thursday night bodes well for todayā€™s session.

Webjet still a buy

According to a note out of Goldman Sachs, its analysts continue to believe the Webjet Limited (ASX: WEB) share price is in the buy zone. This is despite Qantas Airways Limited (ASX: QAN) announcing plans to cut travel agent commissions for international flights to 1% from 5%. It commented: ā€œOverall, we view this announcement as a flag of a key risk factor in the Travel Agency revenue model but one that is partially anticipated in our forecasts. We are Buy rated on WEB with a 12m Target Price of A$6.40.ā€

Gold price softens

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch today after the gold price softened. According to CNBC, the spot gold price is down 0.2% to US$1,877.60 an ounce. The precious metal was under pressure from a strengthening US 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 AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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