5 things to watch on the ASX 200 on Friday

Here’s what to watch on the last day of trade before the long weekend…

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A man looking at ASX share price movements on his computer screen.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged to a new record high. The benchmark index rose 0.45% to 7,302.5 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 positive but 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 strong night of trade on Wall Street, which saw the Dow Jones edge higher, the S&P 500 rise 0.5%, and the Nasdaq jump 0.8%.

US inflation data

Inflation is back with a bang in the United States. According to CNBC, consumer prices for May accelerated at their fastest pace in almost 13 years. The consumer price index rose 5% from a year earlier, ahead of the market’s expectation of 4.7%. Eric Wingorad from Alliance Bernstein notes that “The more persistent categories of inflation — the ones that do a better job of capturing the sustainable trend—are significantly more subdued.” He feels this supports “the idea that the spike in inflation is transitory, even if it is more intense than most forecasters would originally have anticipated.”

Oil prices hit new two-year highs

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 0.3% to US$70.16 a barrel and the Brent crude oil price is up 0.25% to US$72.41 a barrel. Oil prices climbed to two-year highs on rising demand expectations.

PointsBet rated as a buy

The PointsBet Holdings Ltd (ASX: PBH) share price is in the buy zone according to analysts at Goldman Sachs. In response to news that the sports betting company is entering the Maryland market, the broker has retained its buy rating and $17.20 price target. This compares to the current PointsBet share price of $13.50.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price is up 0.3% to US$1,901.40 an ounce. The precious metal pushed higher following the release of US inflation data.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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