On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing day and dropped deep into the red. The benchmark index fell 1% to 8,819.4 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 tumble
The Australian share market looks set for another poor session on Friday following a weak night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 78 points or 0.9% lower this morning. On Wall Street, the Dow Jones was down 0.6%, the S&P 500 fell 0.6%, and the Nasdaq dropped 0.65%.
Oil prices rocket
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a strong finish to the week after oil prices jumped again overnight. According to Bloomberg, the WTI crude oil price is up 8.2% to US$103.93 a barrel and the Brent crude oil price is up 7.4% to US$108.70 a barrel. Traders were bidding oil higher after bracing for a prolonged Iran war.
Hold Seek shares
The Seek Ltd (ASX: SEK) share price could be fully valued according to Bell Potter. This morning, the broker has retained its hold rating on the job listings company's shares with a trimmed price target of $13.80 (from $15.20). It said: "We await a positive shift in sentiment or visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, however the rising interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets."
Gold price drops
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 dropped overnight. According to CNBC, the gold futures price is down 2.3% to US$4,358.5 an ounce. This was driven by the release of US inflation data, which boosted US rate hike bets.
Buy Graincorp shares
The team at Bell Potter sees value in Graincorp Ltd (ASX: GNC) shares at current levels. This morning, the broker has retained its buy rating on the grain exporter's shares with an improved price target of $7.50 (from $7.15). It said: "Buy rating retained. The recent ABARE crop report was positive lead for FY27e and is yet to filter entirely through consensus expectations. However, the margin backdrop at this point, in terms of both grain basis and oilseed crush margins, remains the strongest it has for three years. To us this is key, as consensus FY27e expectations (which the 2026-27 crop underwrites) looks to be carrying forward the margin environment of FY25-26e, which was materially weaker. Trading at ~5.0x FY27e PBTDA we see the valuation as undemanding."
