5 things to watch on the ASX 200 on Friday

Will the ASX 200 end a solid week on a positive note?

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher. The benchmark index rose 0.5% to 7,417.4 points.

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

ASX 200 futures pointing slightly higher

The Australian share market could end the week on a mildly positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 0.05% higher this morning. This follows a positive night on Wall Street, which saw the Dow Jones rise 0.45%, the S&P 500 climb 0.4%, and the Nasdaq edge 0.1% higher.

Oil prices jump

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week on a high after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$73.58 a barrel and the Brent crude oil price is up 1.8% to US$76.06 a barrel. A combination of a softening US dollar and tightening US supplies boosted prices.

Janus Henderson impresses

The Janus Henderson Group CDI (ASX: JHG) share price could charge higher today following the release of its second quarter results after the market close yesterday. The fund manager reported a 95% increase in second quarter adjusted operating income to US$269.3 million. Management advised that this reflects growth in assets due to positive markets and good investment performance. This translated into significant performance fees. The Janus Henderson share price rose 6% on Wall Street.

Fortescue rated as a sell

According to a note out of Goldman Sachs, its analysts believe the Fortescue Metals Group Limited (ASX: FMG) share price is overvalued. This follows the release of its fourth quarter production update. While Fortescue smashed the broker’s expectations with its record shipments, it wasn’t enough for a change of rating. Goldman notes that its shares trade at a significant premium to its rivals and thus has retained its sell rating and put a $19.90 price target on them.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.2% to US$1,828.10 an ounce. Traders were buying gold in response to the US Federal Reserve’s dovish tone.

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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. 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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