On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced notably higher. The benchmark index jumped 1.15% to 7,918.9 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:
ASX 200 expected to fall
The Australian share market looks set to fall on Friday following a subdued night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 is down 0.3%, and the Nasdaq is 0.5% lower.
Oil prices climb
ASX 200 energy shares including Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$68.30 a barrel and the Brent crude oil price is up 1.9% to US$72.14 a barrel. Oil prices pushed higher after the US issued new sanctions on Iran.
Dividends being paid
Today is pay day for a number of ASX 200 shares. Among the companies that will be rewarding their shareholders with dividends are investment company Pinnacle Investment Management Group Ltd (ASX: PNI), stock exchange operator ASX Ltd (ASX: ASX), health imaging technology company Pro Medicus Limited (ASX: PME), and intellectual property services company IPH Ltd (ASX: IPH).
Gold price rises
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price rose overnight. According to CNBC, the gold futures price is up 0.3% to US$3,051.3 an ounce. Increased demand for safe haven assets drove the precious metal higher.
QBE named as a buy
Analysts at Goldman Sachs remain positive on QBE Insurance Group Ltd (ASX: QBE) shares and have named them as a buy with a $23.00 price target. Commenting on the insurance giant, the broker said: "We are Buy-rated on QBE because 1) QBE underlying COR trends look positive, 2) Rate remain adequate with QBE's achieved rate increases tracking to loss cost inflation, 3) North America is on a pathway to improved profitability, 4) Valuation is not demanding at ~11x and attractive v historical average of ~13x, 5) Strong ROE."
