On Thursday, the S&P/ASX 200 Index (ASX: XJO) followed Wall Street's lead and dropped deep into the red. The benchmark index fell 0.95% to 7,020.1 points.
Will the market be able to bounce back from this on Friday and end the year on a high? Here are five things to watch:
ASX 200 expected to jump
The Australian share market looks set to end the week and year in a very positive fashion following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 67 points or 0.95% higher this morning. In late trade in the United States, the Dow Jones is up 1.2%, the S&P 500 has risen 1.9%, and the Nasdaq has jumped 2.65%. This was driven by the release of US jobs data.
Oil prices fall
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 0.7% to US$78.45 a barrel and the Brent crude oil price is down 1.1% to US$82.33 a barrel. Chinese demand fears weighed on prices.
Tech shares to rebound
It looks set to be a great finish to a disappointing year for ASX tech shares on Friday following a very strong night on the NASDAQ index. The tech-focused index is up 2.65% at the time of writing, which should be good news for tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) today.
Gold price rises
Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,824.70 an ounce. Traders were buying gold after US jobs data appeared to support less aggressive rate hikes.
Lithium shares on watch
It has been a tough few weeks for ASX 200 lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE). But they look set to end the year with a strong session after their US-listed peers charged higher overnight. For example, at the time of writing, US$22 billion lithium giant SQM is trading 3% higher.
