5 things to watch on the ASX 200 on Friday

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

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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 dropped 0.8% to 7,175.9 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 jump

The Australian share market looks set to end the week on a positive following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 80 points or 1.1% higher this morning. In the US, the Dow Jones was up 1.3%, the S&P 500 rose 1.8%, and the Nasdaq stormed 2.7% higher.

Wesfarmers remains a sell

The Wesfarmers Ltd (ASX: WES) share price is overvalued according to analysts at Goldman Sachs. In response to the company’s strategy update, the broker has retained its sell rating with a $40.00 price target. It said: “At its current trading FY23 P/E of 23.1 and GSe FY22-24e EPS CAGR of 2.6%, we see better value elsewhere, reiterate Sell.”

Oil prices push higher

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a solid finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 2.1% to US$117.67 a barrel and the Brent crude oil price is up 1.75% to US$118.36 a barrel. This was despite OPEC increasing its production faster than expected.

Pro Medicus rated as a buy

The Pro Medicus Limited (ASX: PME) share price could be good value according to analysts at Bell Potter. This morning the broker retained its buy rating and $55.00 price target on the health imaging technology company. Following another contract win, the broker believes Pro Medicus’ Visage product could be “the emerging standard for the viewing of radiology images in the US.”

Gold price climbs

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 stormed higher overnight. According to CNBC, the spot gold price is up 1.4% to US$1,874.9 an ounce. The gold price rose following weakness in the US dollar.

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 positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. and Wesfarmers Limited. 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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