On Thursday, the S&P/ASX 200 Index (ASX: XJO) returned to form and raced higher. The benchmark index rose 1.3% to 7,356.9 points.
Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to end the week on a positive note following a very strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.6% higher this morning. In the US, the Dow Jones rose 1.85%, the S&P 500 climbed 2.5%, and the Nasdaq stormed 3.1% higher.
Oil prices race higher
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a great finish to the week after oil prices raced higher. According to Bloomberg, the WTI crude oil price is up 3.2% to US$105.32 a barrel and the Brent crude oil price is up 2.1% to US$107.56 a barrel.
ResMed quarterly update
The ResMed Inc (ASX: RMD) share price will be one to watch on Friday following the release of the sleep treatment company’s quarterly update. ResMed reported a 12% increase in revenue to US$864.5 million and a 5% lift in operating income to US$234.3 million. The latter was impacted by a 150 basis point contraction in its gross margin due to higher freight and manufacturing costs.
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,896.4 an ounce. The precious metal bounced back after hitting a two month low yesterday.
Fortescue rated as a sell
The Fortescue Metals Group Limited (ASX: FMG) share price could be heading lower according to analysts at Goldman Sachs. This morning the broker responded to the mining giant’s quarterly update by retaining its sell rating and cutting its price target to $14.90. Goldman continues to believe that its shares are overvalued compared to peers and sees major risks from the Fortescue Future Industries business.