5 things to watch on the ASX 200 on Friday

A solid finish to the week is expected for Aussie investors.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index finished 0.3% lower at 7,759.6 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 to rebound

The Australian share market looks set to end the week on a positive note following a decent session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.35% higher this morning. On Wall Street, the Dow Jones was up 0.1%, the S&P 500 rose 0.1%, and the NASDAQ was 0.3% higher.

Oil prices charge higher

It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$81.89 a barrel and the Brent crude oil price is up 1.4% to US$86.47 a barrel. Increasing tensions between Israel and Lebanon offset soft US demand.

Buy Lynas shares

The Lynas Rare Earths Ltd (ASX: LYC) share price could be undervalued according to analysts at Bell Potter. In response to news that the miner is planning to produce heavy rare earth elements dysprosium (Dy) and terbium (Tb), the broker has reaffirmed its buy rating with an improved price target of $7.80. It said: "This additional product suite should provide a value uplift to pricing as LYC captures greater margin from the higher value Dy+Tb products."

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a solid finish to the week after the gold price charged higher overnight. According to CNBC, the spot gold price is up 1% to US$2,337.3 an ounce. A weaker US dollar gave the precious metal a lift.

Arcadium Lithium rated neutral

Arcadium Lithium (ASX: LTM) shares have been given a neutral rating by analysts at Goldman Sachs. However, its analysts have initiated coverage with a price target of $6.50, which implies potential upside of 25% for investors. It said: "With global optionality and strong production growth on the largest lithium resource base among our coverage, Arcadium is well positioned longer-term, though we see risk to projects on execution and cashflow, on our lithium price outlook, and to consensus expectations. We initiate at Neutral with 12m PTs of US$4.30/sh & A$6.50/sh on ALTM & LTM.AX, representing ~20-30% TSR."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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