On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and slipped into the red. The benchmark index fell 0.1% to 8,525.7 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 for a heavy decline on Friday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 87 points or 1% lower this morning. In late trade on Wall Street, the Dow Jones is down 1%, the S&P 500 is down 1.75% and the Nasdaq is down 2.4%.
Oil prices rebound
It could be a good finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.5% to US$94.38 a barrel and the Brent crude oil price is up 5.4% to US$107.78 a barrel. Oil prices jumped after Iran rejected peace talks with the US.
Xero-Anthropic deal
Xero Ltd (ASX: XRO) shares will be on watch on Friday after the cloud accounting platform provider announced a deal with AI giant Anthropic. The multi-year partnership will bring Claude's AI directly into Xero, and Xero's financial data and tools into Claude.ai. The company notes that this will give small businesses and their accounting and bookkeeping advisors real-time financial intelligence and the ability to act on it, wherever they choose to work.
Gold price tumbles
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 3.9% to US$4,375.5 an ounce. Inflation and higher interest rate concerns are weighing on the precious metal.
Buy Fenix shares
Fenix Resources Ltd (ASX: FEX) shares could be good value according to the team at Bell Potter. This morning, the broker has reaffirmed its buy rating on the iron ore miner's shares with a trimmed price target of 63 cents (from 67 cents). It said: "FEX has outlined a clear pathway to incrementally grow iron ore production to 10Mtpa at significantly lower unit costs, leveraging its integrated logistics network to underpin cash flows and fund its substantial organic growth outlook. FEX holds the largest storage position at the strategic and fast-growing Geraldton Port."
