On Thursday, the S&P/ASX 200 Index (ASX: XJO) carved out the smallest of gains. The benchmark index rose ever so slightly to 7,325 points.
Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:
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ASX 200 expected to edge higher
The Australian share market looks for a soft but positive finish to the week after a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 2 points higher this morning. In the United States, the Dow Jones was up 0.5%, but the S&P 500 fell 0.7% and the NASDAQ dropped 2.05%. Tesla shares weighed heavily on the latter.
BHP named as a buy
BHP Group Ltd (ASX: BHP) shares remain a buy according to analysts at Goldman Sachs. However, the broker's new price target of $45.60 implies very modest upside for investors. Goldman has also warned that BHP's dividend could be hit in FY 2024 due to its higher net debt and capex requirements. The broker is forecasting a 3.8% yield next year.
Oil prices rise
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.4% to US$75.63 a barrel and the Brent crude oil price is up 0.3% to US$79.68 a barrel. Lower US crude stockpiles boosted prices.
Gold price falls
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) will be on watch after the gold price fell overnight. According to CNBC, the spot gold price is down 0.45% to US$1,971.7 an ounce. The precious metal fell from a two-month peak after the US dollar and bond yields strengthened.
Sell Mineral Resources shares
The Mineral Resources Ltd (ASX: MIN) share price could be severely overvalued according to Goldman Sachs. This morning, the broker has retained its sell rating with a $57 price target. In response to the miner's deal with Albemarle, its analysts said: "180 on LiOH strategy with ALB, positive for balance sheet but NPV negative at our LiOH price."
