5 things to watch on the ASX 200 on Friday

The ASX 200 looks set to end the week on a positive note…

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On Thursday the S&P/ASX 200 Index (ASX: XJO) started the new financial year in a disappointing fashion. The benchmark index fell 0.6% to 7,265.6 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 31 points or 0.4% higher this morning. This follows a solid night on Wall Street which saw the Dow Jones rise 0.4%, the S&P 500 climb 0.5%, and the Nasdaq push 0.1% higher.

Oil prices storm higher

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong day after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$74.96 a barrel and the Brent crude oil price is up 1.2% to US$75.51 a barrel. Demand hopes have driven oil prices to three-year highs.

IDP Education acquisition

The IDP Education Ltd (ASX: IEL) share price will be one to watch on Friday after announcing a new acquisition. The language testing company has entered into a binding agreement to acquire 100% of the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds on a debt free, cash free basis. The company will fund the acquisition from existing cash and debt. Post transaction, IDP Education will be the sole distributor of IELTS in the key Indian market.

Lendlease remains a buy

The Lendlease Group (ASX: LLC) share price is still in the buy zone for Goldman Sachs despite its guidance downgrade. According to a note, the broker has retained its conviction buy rating but trimmed its price target to $15.53. It said: “Although LLC now expects to fall well short of consensus and GS expectations for FY21E, today’s market update provided confirmation that investor demand for its urban renewal development product remains strong.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could end the week on a high after the gold price pushed higher. According to CNBC, the spot gold price is up 0.3% to US$1,776.70 an ounce. Traders were buying the precious metal amid concerns over the Delta variant of COVID-19.

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Motley Fool contributor 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 and has recommended Idp Education Pty Ltd. 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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