On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and tumbled into the red. The benchmark index fell 0.6% to 8,911.1 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 fall
The Australian share market looks set for another poor session on Friday despite a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 44 points or 0.5% lower this morning. On Wall Street, the Dow Jones was up 0.15%, the S&P 500 rose 1.1%, and the Nasdaq jumped 1.9%.
Oil prices soften
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after oil prices softened further overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$76.64 a barrel and the Brent crude oil price is down 0.2% to US$79.38 a barrel. Traders have been selling down oil prices since the US and Iran signed a peace deal and oil started to flow through the Strait of Hormuz again.
Sell REA Group shares
Bell Potter has reaffirmed its sell rating on REA Group Ltd (ASX: REA) shares with a trimmed price target of $133.00 (from $137.00). This implies potential downside of 8% from current levels. It said: "We retain our Sell recommendation. Consensus EPS forecasts have recently declined by c.-2% in recent weeks, however, we still view 13% consensus growth for FY27e as having downside risk. Our thesis rests on REA's share price declining from a reduction in EPS forecasts in-line with market pricing."
Gold price drops
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a tough finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 3.3% to US$4,235.1 an ounce. Hawkish comments from the US Federal Reserve boosted the US dollar and rate hike bets.
Buy Seek shares
Seek Ltd (ASX: SEK) shares are undervalued according to Bell Potter. This morning, the broker has retained its buy rating and $18.60 price target on the job listings company's shares. This implies potential upside of almost 40% for investors from current levels. It commented: "We maintain our Buy; SEK is our preferred rate-sensitive classifieds exposure looking through to a dovish RBA tilt, given the diversification in CAR (Buy; TP: $39.80ps) and policy-impacted earnings outlook for REA (Sell; TP:$133ps), though we acknowledge likely near-term volatility in Aus and global economic data impacting the outlook for SEK."
