On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ended the day in the red. The benchmark index fell 0.25% to 8,633.2 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 jump
The Australian share market looks set for a very strong session 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 148 points or 1.7% higher this morning. On Wall Street, the Dow Jones was up 1.85%, the S&P 500 rose 1.75%, and the Nasdaq jumped 2.55%.
Oil prices sink
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.1% to US$86.35 a barrel and the Brent crude oil price is down 4.45% to US$88.98 a barrel. Traders were selling oil amid reports the US President Donald Trump wants to seize Iran's Kharg Island, which is home to its oil exports.
Buy Nick Scali shares
Morgans has initiated coverage on Nick Scali Limited (ASX: NCK) shares with a buy rating and $17.84 price target. This implies potential upside of 18.5% from current levels. The broker said: "We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet."
Gold price rebounds
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 rebounded from a six-month lower overnight. According to CNBC, the gold futures price is up 2.5% to US$4,236.4 an ounce. Falling oil prices gave the precious metal a boost.
Buy Select Harvests shares
Select Harvests Ltd (ASX: SHV) shares are undervalued according to Bell Potter. This morning, the broker retained its buy rating and $5.30 price target on the almond producer's shares. This implies potential upside of almost 40%. It said: "The implementation of the Sustainable Groundwater Management Act (SGMA) in California has the potential to result in a multi-year reduction in Californian almond supply, kickstarting an upward price cycle that would be materially beneficial for SHV."
