On Thursday, the S&P/ASX 200 Index (ASX: XJO) returned to form and charged higher. The benchmark index rose 0.75% to 8,848.7 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 rise again
The Australian share market looks set to rise on Friday following a good night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 6 points or 0.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.95%, the S&P 500 is up 0.8%, and the Nasdaq is up 1.15%.
Oil prices tumble
It could be a tough finish to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.2% to US$59.27 a barrel and the Brent crude oil price is down 2% to US$63.95 a barrel. This was driven by Donald Trump toning down threats against Greenland and Iran.
Sell Lynas shares
Lynas Rare Earths Ltd (ASX: LYC) shares could be seriously overvalued according to analysts at Bell Potter. According to the note, the broker has reaffirmed its sell rating on the rare earths producer's shares with an improved price target of $11.15. This implies potential downside of 33% for investors from current levels. It said: "Our target price increases to $11.15/sh (previously $9.60/sh), and we maintain our Sell recommendation. Whilst we like the business, asset, and team, we believe there is significant optimism priced into the stock, with investors using it as a hedge on US-China relations."
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.8% to US$4,925.4 an ounce. Safe haven demand has been driving gold higher this week.
Buy Regis Resources shares
Regis Resources Ltd (ASX: RRL) shares could be heading higher according to Bell Potter. This morning, the broker has retained its buy rating on the gold miner's shares with an improved price target of $8.85 (from $7.05). This suggests that upside of 17% is possible from current levels. The broker said: "We remain attracted to RRL's all-Australian, multi-mine asset portfolio, its demonstrated leverage to the gold price, highly competitive cash generation and its fully unhedged, debt free position. Our NPV-based valuation lifts 26%, to $8.85/sh. We retain our Buy recommendation."
