5 things to watch on the ASX 200 on Friday

The ASX 200 looks set to end the week deep in the red…

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its early gains to end the period in the red. The benchmark index fell 0.15% to 6,591.1 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 sink

The Australian share market looks set to end the week deep in the red following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 130 points or 2% lower this morning. In the US, the Dow Jones was down 2.4%, the S&P 500 fell 3.25%, and the Nasdaq sank 4.1%. Investors were selling equities amid concerns that the Federal Reserve’s aggressive approach toward taming inflation could bring the economy into a recession.

GUD downgrades profit guidance

The GUD Holdings Limited (ASX: GUD) share price could come under extra pressure today after the diversified products company downgraded its earnings guidance. GUD now expects underlying operating earnings to be $147 million in FY 2022. This is down from its previous guidance of $155 million to $160 million. Management advised that supply chains remain volatile, and, in some cases, pressures have intensified.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could avoid the market selloff today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.5% to US$117.09 a barrel and the Brent crude oil price is up 0.7% to US$119.29 a barrel. Tight supplies continue to keep oil prices high.

TechnologyOne rated as a buy

The TechnologyOne Ltd (ASX: TNE) share price could be heading higher from current levels according to Bell Potter. This morning the broker reiterated its buy rating with a slightly trimmed price target of $12.50. Bell Potter sees “potential for uplift in growth rate/guidance next year.”

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a positive finish to the week after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 2% to US$1,857.4 an ounce. A softer US dollar boosted the safe haven asset.

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 recommended TechnologyOne 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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