On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and edged into the red. The benchmark index fell slightly to 8,538.9 points.
Will the market 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 lower
The Australian share market looks set to edge lower on Friday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 7 points or 0.1% lower this morning. On Wall Street, the Dow Jones was down 0.25%, the S&P 500 fell 0.5%, and the Nasdaq dropped 0.8%. Tesla (NASDAQ: TSLA) shares sank 14%.
Oil prices rise
ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a decent finish to the week after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$63.37 a barrel and the Brent crude oil price is up 0.7% to US$65.32 a barrel. This has been driven by hopes that a US-China trade deal could be reached in the near future.
Buy Nufarm shares
The Nufarm Ltd (ASX: NUF) share price could be in the buy zone according to analysts at Bell Potter. Following a review of the agriculture sector, the broker has reaffirmed its buy rating and $3.45 price target on the agricultural chemicals company's shares. Based on its current share price of $2.10, this implies potential upside of more than 60% for investors over the next 12 months. It said: "In general crop conditions remain favourable in most markets, with recent USDA projections pointing to +2% YOY growth in global oilseed production and +1% YOY growth in global wheat forecasts."
Gold price falls
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor finish to the week after the gold price fell overnight. According to CNBC, the gold futures price is down 0.6% to US$3,380.3 an ounce. Easing US-China trade war concerns put pressure on the safe haven asset.
BHP looking at nickel
BHP Group Ltd (ASX: BHP) shares will be on watch today amid reports the mining giant is looking at nickel again. According to the AFR, BHP could re-enter the nickel industry with a US$1 billion (A$1.5 billion) mine in Tanzania with the potential to be a lower cost producer than the world-beating Indonesian nickel industry. BHP's Kabanga nickel project could reportedly produce nickel for US$7,000 a tonne, which is half the current nickel price and well below its US$22,000 a tonne costs in Western Australia.
