On Thursday, the S&P/ASX 200 Index (ASX: XJO) recorded the smallest of gains. The benchmark index rose a modest 3.3 points to 7,311.1 points.
Will the market be able to build on this on Friday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open 43 points or 0.6% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1%, and the NASDAQ index is down 1.2%.
Oil prices fall again
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 continued to slide overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$75.68 a barrel and the Brent crude oil price is down 1.3% to US$81.58 a barrel. Recession fears have been weighing on prices this week.
Buy Xero shares
The Xero Limited (ASX: XRO) share price surged higher yesterday after announcing major cost reductions. This has gone down well with analysts at Goldman Sachs, who have retained their conviction buy rating with an improved price target of $116.00. It said: "We upgrade FY24-26E EBITDA by +9-17% given the step change in opex."
Gold price rises
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 rose overnight. According to CNBC, the spot gold price is up 1.1% to US$1,838.5 an ounce. US dollar weakness and market volatility gave gold a boost.
Metcash shares downgraded
The Metcash Limited (ASX: MTS) share price could be overvalued according to Goldman Sachs. This morning, the broker has downgraded the wholesale distributor's shares to a sell rating with a $3.50 price target. It explained: "We downgrade MTS from Neutral to Sell due to moderating supermarket inflation and rising competition, both of which we expect to negatively impact MTS's Food sales and EBIT."
