On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and raced notably higher. The benchmark index rose 1.45% to 8,621.7 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 positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 42 points or 0.5% higher this morning. On Wall Street, the Dow Jones was up 0.55%, the S&P 500 rose 0.15%, and the Nasdaq edged 0.1% higher.
Oil prices ease
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a subdued night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.65% to US$97.59 a barrel and the Brent crude oil price is down 0.65% to US$104.35 a barrel. Traders were selling oil amid optimism that a US-Iran peace deal could be on the horizon.
BHP and Rio Tinto on watch
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares will be on watch on Friday. Overnight their NYSE-listed shares pushed higher, which may bode well for today's session. The catalyst for this appears to have been another rise in copper prices. The base metal is now up almost 10% since the start of May.
Gold price rises
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a relatively positive finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.15% to US$4,542.2 an ounce. Falling oil prices have reduced interest rate hike bets and boosted the gold price.
Buy Energy One shares
Energy One Ltd (ASX: EOL) shares could be in the buy zone according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the software company's shares with a trimmed price target of $17.10. It said: "We believe AI displacement concerns are unwarranted with EOL as they serve a deeply regulated and sticky industry with mission-critical solutions. Tailwinds remain regarding growing complexity in energy markets, surging European trading volumes and increasing distributed energy resources. These trends reinforce the strength of EOL's positioning as a one-stop-shop provider of software and services, rather than a collection of individual tools. We remain attracted to the company's strong growth profile, expanding margins and impressive SaaS metrics."
