On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and charged to a new record high. The benchmark index rose 0.6% to 7,260.1 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set to end the week on a subdued note. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning. This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.1%, the S&P 500 drop 0.35%, and the Nasdaq tumble 1% lower.
Oil prices rise
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices edged higher. According to Bloomberg, the WTI crude oil price is up 0.1% to US$68.88 a barrel and the Brent crude oil price is up slightly to US$71.36 a barrel. A mixed US inventory report held back oil prices.
Tech shares on watch
Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) could come under pressure today after their US counterparts were sold off overnight. The tech-heavy Nasdaq index fell 1% after investors rotated into cyclical stocks. As the local tech sector has a tendency to follow the Nasdaq’s lead, it doesn’t bode well for Friday’s trade.
Wesfarmers given buy rating
The Wesfarmers Ltd (ASX: WES) share price is in the buy zone according to analysts at Goldman Sachs. In response to its strategy update on Thursday, the broker has retained its buy rating and $59.70 price target. Goldman notes that key priorities have been aligned towards developing a market leading data and digital ecosystem, investing in platforms, and accelerating the pace of continuous improvement.
Gold price sinks
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week in the red after the gold price sank. According to CNBC, the spot gold price is down 1.9% to US$1,873.20 an ounce. A strong US dollar put pressure on the safe haven asset.