On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.5% to 6,964 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 with a very strong gain after US inflation came in softer than expected. According to the latest SPI futures, the ASX 200 is expected to open 141 points or 2% higher this morning. In late trade in the United States, the Dow Jones is up 3.2%, the S&P 500 has risen 4.7%, and the Nasdaq has stormed 6.3% higher.
Oil prices rise
Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$86.96 a barrel and the Brent crude oil price is up 1.6% to US$94.12 a barrel. Oil prices rebounded on the inflation news.
Xero remains a buy
The Xero Limited (ASX: XRO) share price was sold off on Thursday after the company's half year earnings fell short of expectations and its CEO quit. Goldman Sachs sees this as a buying opportunity and has reiterated its buy rating with an improved $115.00 price target. Goldman was pleased with Xero's exit ARPU metric.
Gold price jumps
Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a positive end to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 2.35% to US$1,754.60 an ounce. Traders were buying gold on the belief that the US Federal Reserve would slow its interest rate hikes following the inflation reading.
Breville named as a buy
The Breville Group Ltd (ASX: BRG) share price could be in the buy zone according to Goldman Sachs. Its analysts have reiterated their buy rating with a $24.70 price target following the appliance maker's trading update. Goldman said: "We reiterate our Buy rating for BRG as we believe the business remains defensive with >60% of sales exposed to US and APAC regions where demand remains resilient to date."
