On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but fell jus short of positive territory. The benchmark index ended the day down just 3.8 points to 7,251.9 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set to end the week in a subdued fashion following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% lower this morning. In the United States, the Dow Jones was down 0.65% and the S&P 500 fell 0.2%, but the NASDAQ rose 0.2%.
REA third-quarter update
The REA Group Ltd (ASX: REA) share price will be one to watch today when the real estate listings company releases its third-quarter update. Expectations are high for the realestate.com.au operator. Commenting on the second half, Citi said: "[We] expect REA to deliver double digit yield growth in 2H23e/FY24e and flex its cost base if conditions are weaker than expected."
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.6% to US$71.39 a barrel and the Brent crude oil price is down 1.3% to US$75.38 a barrel. Concerns over the potential for an unprecedented US debt default weighed on sentiment.
Gold price drops
Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could also have a poor finish to the week after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.8% to US$2,021 an ounce. A stronger US dollar weighed on the gold price.
Allkem shares downgraded to hold
Allkem Ltd (ASX: AKE) shares may be fully valued now after yesterday's stunning gain. That's the view of analysts at Morgans, which have downgraded the lithium miner's shares to a hold rating with a $14.40 price target. The broker said: "We reduce our rating to HOLD given the extremely strong share price reaction. We think the deal makes sense for AKE but there is limited fundamental upside given today's rally."
