On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a good session and pushed higher. The benchmark index rose 0.45% to 8,444.3 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 fall
The Australian share market looks set for a subdued session on Friday following a poor night of trade in the United States ahead of Thanksgiving. According to the latest SPI futures, the ASX 200 is expected to open 24 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.4%, and the Nasdaq is 0.6% lower.
Oil prices rise
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a decent finish to the week after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$68.95 a barrel and the Brent crude oil price is up 0.5% to US$73.17 a barrel. This was despite the US reporting a lift in gasoline stockpiles.
IAG rated neutral
Insurance Australia Group Ltd (ASX: IAG) shares could be fully valued according to analysts at Goldman Sachs. In response to news that the insurance giant is acquiring a 90% interest in the RACQ insurance business, the broker has retained its neutral rating and $7.50. It said: "We are Neutral-rated. Our 12-month TP of A$7.50 is 50% based on our DCF valuation and 50% on a multiple of NTA derived from a regression of P/NTA to sustainable ROTE across our financials coverage universe. Key downside risks include: 1) Commercial/ Personal Rate momentum weakens materially; 2) Significant volume loss to competitors as a result of price increases; 3) Persistent claims inflation."
Gold price creeps higher
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a soft day after the gold price crept ever so slightly higher overnight. According to CNBC, the gold futures price is up a fraction to US$2,641.2 an ounce. A stronger US dollar held back the precious metal.
Buy NIB shares
NIB Holdings Limited (ASX: NHF) shares are a buy according to analysts at Goldman Sachs. This morning, the broker has reaffirmed its buy rating and $6.50 price target on the health insurance company's shares. It commented: "We are Buy-rated on NHF given: 1) It offers defensive exposure to the private health insurance sector 2) The claims environment (utilisation / inflation) is generally manageable albeit until recently 3) NHF policyholder growth has been better than industry, 4) Expense buffers available to support margins and 5) Strong approved rate increases."
