5 things to watch on the ASX 200 on Friday

Will the ASX 200 finish the week on a high?

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower again. The benchmark index fell 0.3% to 7,275.3 points.

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

ASX 200 expected to rebound

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 44 points or 0.6% higher this morning. This follows a strong night on Wall Street which saw the Dow Jones rise 0.95%, the S&P 500 climb 0.6%, and the Nasdaq push 0.7% higher.

Oil prices near three-year highs

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$73.30 a barrel and the Brent crude oil price is up 0.5% to US$75.55 a barrel. Drawdowns in U.S. inventories and accelerating German economic activity pushed oil prices close to three-year highs.

NEXTDC given conviction buy rating

The Nextdc Ltd (ASX: NXT) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker has reiterated its conviction buy rating and put a $14.80 price target on the data centre operator’s shares. This follows a recent analyst day held by rival Equinix which highlighted the robust outlook for interconnected data centres.

Iron ore prices soften

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be on watch on Friday after the iron ore price softened. According to Metal Bulletin, the spot iron ore price fell 1.2% overnight to US$213.46 a tonne.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week in the red after the gold price dropped again. According to CNBC, the spot gold price is down 0.55% to US$1,773.90 an ounce. Traders were selling the precious metal after comments out of the US Fed.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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