5 things to watch on the ASX 200 on Friday

Here’s what to expect on the ASX 200 on Friday…

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower. The benchmark index fell 1.75% to 6,941 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to end the week in a subdued fashion following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. In the US, the Dow Jones was down 0.3%, the S&P 500 dropped 0.1%, and the Nasdaq edged 0.05% higher. The Dow fell for a sixth straight day.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.95% to US$106.73 a barrel and the Brent crude oil price is up 0.5% to US$108.07 a barrel.

CBA remains a sell

Commonwealth Bank of Australia (ASX: CBA) shares could be a sell according to analysts at Goldman Sachs. In response to the banking giant’s third-quarter update, the broker has retained its sell rating with an improved price target of $89.86. While the broker appears to have been impressed with CBA’s update, it still didn’t see enough to justify the premium its shares trade at.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a tough finish to the week after the gold price sank overnight. According to CNBC, the spot gold price is down 1.75% to US$1,820.9 an ounce. Traders were selling the precious metal after the US dollar strengthened.

Goodman shares named as a buy

The recent pullback by the Goodman Group (ASX: GMG) share price could have created a buying opportunity for investors. According to a note out of Goldman Sachs, its analysts have initiated coverage on the property company with a buy rating and $25.00 price target. It said: “Our view of GMG is supported by a solid outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space.”

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 Scott Phillips.

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