On Thursday, the S&P/ASX 200 Index (ASX: XJO) was under pressure and dropped into the red. The benchmark index fell 0.5% to 8,753.4 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 sink
The Australian share market looks set to end the week deep in the red Friday following a selloff in the United States. According to the latest SPI futures, the ASX 200 is expected to open 140 points or 1.6% lower this morning. In late trade on Wall Street, the Dow Jones is currently down 1.55%, the S&P 500 is 1.7% lower, and the Nasdaq is sinking 2.4%.
Oil prices rise
It looks like it could be a decent finish to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.45% to US$58.75 a barrel and the Brent crude oil price is up 0.55% to US$63.07 a barrel. Traders were buying oil on the belief that it had been sold off this week.
Hold Graincorp shares
Graincorp Ltd (ASX: GNC) shares are fully valued now according to analysts at Bell Potter. In response to the grain exporter's results release, the broker has retained its hold rating with a reduced price target of $8.50. It said: "Our Hold rating is unchanged. Wheatcast yield indicators imply a crop broadly consistent with a year ago and GNC should benefit from the removal of CPC outflows and GrainsConnect losses (+$50m YOY). Against this global grain supply remains high (limiting marketing returns) and crush margins appear a modest YOY tailwind."
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 tumbled overnight. According to CNBC, the gold futures price is down 1% to US$4,171.3 an ounce. The market is now ruling out an interest rate cut in the US in December.
Buy Orica shares
Now could be a good time to buy Orica Ltd (ASX: ORI) shares according to Bell Potter. In response to the commercial explosives company's FY 2025 result, the broker has retained its buy rating with an improved price target of $26.00. It said: "ORI is well positioned to deliver EBIT growth in the short-to-medium term, underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth will also be supported by further premium product uptake, strong facility performance across AN and sodium cyanide supply networks and commercial discipline."
