On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and edged lower. The benchmark index fell almost 0.1% to 9,146.8 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 subdued session on Friday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.6% lower this morning. In late trade in the US, the Dow Jones is down 0.2%, the S&P 500 is down 0.358%, and the Nasdaq is 0.5% lower.
Oil prices charge higher
ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could finish the week on a positive note after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$89.10 a barrel and the Brent crude oil price is up 3.7% to US$96.18 a barrel. Fading US-Iran peace hopes were behind the rise.
GQG shares downgraded
Morgans was disappointed with the GQG Partners Inc (ASX: GQG) trading update and has downgraded the fund manager's shares to a hold rating with a heavily reduced price target of 82 cents. It said: "GQG's October update was very weak, with net outflows of US$6.7bn and negative investment performance of US$11bn taking FUM down 12% in the month to US$131.6bn. Year-to-date net outflows now total US$32.9bn, with no sign yet of stabilisation. […] To reflect higher risk, we cut our target PE from 8x to 5x and apply a 15% discount to our DCF. Our PT falls to A$0.82 (previously A$1.52). The franchise retains inherent value if management can restore performance, but with momentum firmly to the downside, it is difficult to stay positive until we see signs of a turnaround. We move to HOLD."
Gold price falls again
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price fell again overnight. According to CNBC, the gold futures price is down 2.75% to US$3,890 an ounce. The gold price hit a one-year low on increased inflation and rate hike fears.
Buy Minerals 260 shares
Morgans thinks that investors should be buying ASX gold stock Minerals 260 Ltd (ASX: MI6) following a funding update. It has retained its buy rating and $1.57 price target on its shares. The broker said: "MI6 has received credit approved commitments from ANZ, NAB and Societe Generale for A$410m in debt facilities (A$335m Project Finance Facility and A$75m Working Capital Facility), which, alongside FNV royalty funding and the recent Placement, fully fund the Bullabulling development to first production. Terms are in line with expectations but nonetheless attractive, with a margin of less than 3% above BBSY, a 7-year PFF tenor and no mandatory hedging. Financial close is expected in 1Q CY27, in line with DFS completion and FID. We maintain our BUY rating and A$1.57ps price target."
