On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark index fell 0.6% to 8,378.7 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:
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ASX 200 expected to edge higher
The Australian share market looks set to edge higher on Friday following a relatively positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 17 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.75%, the S&P 500 is up 0.2%, but the Nasdaq is 0.2% lower.
Oil prices fall
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$74.68 a barrel and the Brent crude oil price is down 0.85% to US$78.33 a barrel. This follows news that Donald Trump will ask OPEC to bring prices down.
Buy Wesfarmers shares
Analysts at Goldman Sachs have upgraded Wesfarmers Ltd (ASX: WES) shares to a buy rating with an improved price target of $78.70 (from $69.50). Commenting on the Bunnings owner, the broker said: "Reflecting our updated forecasts, WES will have the highest F24-27 EPS CAGR of 10% in our top 5 consumer coverage (vs WOW, COL, EDV, JBH) while ROIC will expand by 6pts to 25% vs peers flat, resulting in DCF and SOTP valuation uplift. Our 12m TP of A$78.7 implies 11% TSR, upgrade to Buy from Neutral. Our FY25/26/27e EPS is -1%/+2%/+5% above VA Consensus."
Gold price eases
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.3% to US$2,763.4 an ounce. The precious metal edged lower after the US dollar strengthened.
Fortescue shares upgraded
Fortescue Ltd (ASX: FMG) shares are now a hold according to analysts at Bell Potter. This morning, the broker has taken its sell rating off the iron ore giant's shares and upgraded them to a hold rating with an improved price target of $17.53. It said: "We see potential for some near-term tailwinds from a lower exchange rate, this is now factored into our numbers and partially offsets reduced price realisations. At these levels, FMG's dividend yield is beginning to emerge as a price support and combined with recent share price decline we upgrade our recommendation to Hold."
