On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a tough day and dropped into the red. The benchmark index fell 0.65% to 7,204.8 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 tumble
The Australian share market looks set to end the week with another day in the red after a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 85 points or 1.2% lower this morning. In late trade in the United States, the Dow Jones is down 2.35%, the S&P 500 has sunk 2.5%, and the Nasdaq has crashed 3.2%. Interest rate hike concerns weighed on the market.
Oil prices down
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.55% to US$76.10 a barrel and the Brent crude oil price is down 1.85% to US$81.15 a barrel. A stronger dollar weighed on prices.
Pilbara Minerals shares upgraded
The Pilbara Minerals Ltd (ASX: PLS) share price could have fallen too far on Thursday according to analysts at Morgans. A day after initiating coverage with a hold rating, the broker has upgraded the lithium miner's shares to an add rating with a $4.70 price target. It commented: "Given the steep drop in the share price today, we see more opportunity than we did when we published our initiation yesterday. We upgrade our rating to ADD."
Gold price falls
Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult finish to the week after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.7% to US$1,788.2 an ounce. Traders were selling gold amid the prospect of interest rates going higher than expected.
Woolworths shares named as a buy
Goldman Sachs remains positive on the Woolworths Group Ltd (ASX: WOW) share price after the company announced the $586 million acquisition of a 55% stake in Petspiration Group, the second-largest player in the domestic specialty pet sector. In response, Goldman has reiterated its conviction buy rating and $41.70 price target on its shares. It sees the deal "as an incrementally positive step in the evolution of WOW's eco-system strategy."
