On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped deep into the red. The benchmark index fell a disappointing 1.25% to 7,163.4 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 sink again
The Australian share market looks set to end the week in a disappointing fashion following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 87 points or 1.2% lower this morning. In the United States, the Dow Jones was down 1.1%, the S&P 500 fell 0.8%, and the NASDAQ dropped 0.8%. This follows the release of strong US jobs data, sparking fears of more hikes.
Pinnacle update
Pinnacle Investment Management Group Ltd (ASX: PNI) shares will be on watch today after the ASX 200 investment company released a market update after the market close on Thursday. Pinnacle revealed that it achieved performance fees after tax of $14.6 million for FY 2023 from affiliates. This compares to $16.6 million a year earlier.
Oil prices mixed
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.1% to US$71.85 a barrel and the Brent crude oil price is down 0.15% to US$76.54 a barrel. The prospect of more US rate hikes spooked markets.
Gold price falls
ASX 200 gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.45% to US$1,916.3 an ounce. Strong US jobs data weighed on the safe haven asset.
BHP and Rio Tinto set to fall
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares look set to fall on Friday after a poor night of trade for the US-listed shares. Investors were hitting the sell button amid concerns that US interest rate hikes could cause a recession. This could lead to softer demand for the commodities these mining giants produce.
