On Thursday, the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index fell 0.8% to 8,967.7 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 rebound
The Australian share market looks set to rebound on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 91 points or 1% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.1%, the S&P 500 is up 1.55%, and the Nasdaq is 2.6% higher.
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 overnight. According to Bloomberg, the WTI crude oil price is down 0.95% to US$83.66 a barrel and the Brent crude oil price is down 1.6% to US$89.29 a barrel. This was despite an escalation in US-Iran tensions.
CSL shares given hold rating
CSL Ltd (ASX: CSL) shares are a hold ahead of earnings season according to analysts at Bell Potter. This morning, the broker has retained its hold rating on the biotech giant's shares with an improved price target of $120.00. It said: "Despite the strong competitive barriers that exist for plasma companies compared to conventional pharma, we think a discount for CSL relative to its peers is currently warranted due to (1) the ~2% CAGR growth outlook in the mid-term vs ~4.5% for pharma peers; (2) declining earnings expectation in FY27; (3) the lack of a permanent CEO; and (4) our forecasts remaining below consensus average."
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a strong finish to the week after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.65% to US$4,102.3 an ounce. A weaker US dollar and soft inflation data boosted the precious metal.
Buy Vulcan, hold PLS shares
Bell Potter has given its verdict on lithium stocks Vulcan Energy Resources Ltd (ASX: VUL) and PLS Group Ltd (ASX: PLS) following their quarterly updates. The broker has retained its speculative buy rating on Vulcan shares with a reduced price target of $4.50 (from $6.10) and held firm with its hold rating on PLS shares with a reduced price target of $4.70 (from $6.15). Commenting on the latter, Bell Potter said: "We maintain our Hold recommendation. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals."
