On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and raced higher. The benchmark index rose 0.85% to 9,068.4 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 to fall on Friday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 35 points or 0.4% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.9%, the S&P 500 is down 0.95%, and the Nasdaq is 0.9% lower.
Oil prices fall again
It looks set to be a subdued finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.15% to US$57.60 a barrel and the Brent crude oil price is down 1.15% to US$61.20 a barrel. Oil prices fell despite news that India pay stop importing Russian oil.
Imdex shares downgraded
Imdex Ltd (ASX: IMD) shares could be fully valued now according to analysts at Bell Potter. This morning, the broker has downgraded the mining product technology solutions provider's shares to a hold rating (from buy) with a $3.90 price target. It said: "We downgrade our recommendation to Hold and maintain our TP of $3.90/sh. While we remain bullish on near-term exploration activity growth, as reflected in our 23% EPS CAGR estimate over FY25-27, we see IMD's 32.7x FY26 PE and 28.6x FY27 PE as fair value, with the company's valuation premium to peers at multi-year highs."
Gold price charges higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good finish to the week after the gold price continued its record-breaking run overnight. According to CNBC, the gold futures price is up a further 2.55% to US$4,309 an ounce. This has been driven by a safe haven rush and increased US rate cut bets.
Buy Evolution Mining shares
Bell Potter thinks that Evolution Mining shares are good value despite rising strongly this year. In response to the gold miner's quarterly update, the broker has retained its buy rating with an improved price target of $12.35 (from $10.55). It commented: "EVN offers effectively unhedged gold and copper exposure via a portfolio of high quality, long-life assets in Tier 1 jurisdictions and overseen by a high-quality management team. EVN has stated its intention to pass growing free cash flows on to shareholders."
