On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.45% to 8,793.2 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 fall
The Australian share market looks set for a poor session on Friday following a relatively weak night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 27 points or 0.3% lower this morning. On Wall Street, the Dow Jones was flat but the S&P 500 fell 1.2% and the Nasdaq sank 2.6%.
Oil prices rise
ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch today after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.2% to US$99.31 a barrel and the Brent crude oil price is up 3.9% to US$113.12 a barrel. This follows reports that Donald Trump could be planning further action on Iran.
Buy NextDC shares
Morgans thinks investors should be buying NextDC Ltd (ASX: NXT) shares while they are down in the dumps. The broker has upgraded the data centre operator's shares to a buy rating with a $7.50 price target. It said: "In our view NXT is incredibly cheap and its ~30% discount to NTA is unwarranted if these issues are just short term in nature. However, management needs to de-risk these key concerns for equity investors. This could take some time. We set our Target Price at $7.50 which is broadly in line with NTA and below our valuation. We upgrade to a BUY recommendation, from HOLD. Noting the heightening risks relative to normal operating conditions for the business."
Gold price tumbles
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 tumbled overnight. According to CNBC, the gold futures price is down 2.65% to US$4,040.1 an ounce. Traders were selling gold after the oil rally fuelled inflation worries.
AGMs
A number of annual general meetings are taking place today, which could see the release of trading updates. Among those holding meetings are plumbing parts company Reliance Worldwide Corporation (ASX: RWC), salary packaging company McMillan Shakespeare Ltd (ASX: MMS), and broadband provider Aussie Broadband Ltd (ASX: ABB).
