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On Thursday, the S&P/ASX 200 Index (ASX: XJO) had another poor session and dropped into the red. The benchmark index fell 0.5% to 7,628.2 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:
ASX 200 poised to rebound
The Australian share market looks set to end the week on a positive note despite a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 50 points or 0.65% higher this morning. On Wall Street, the Dow Jones was down 0.85%, the S&P 500 fell 0.6%, and the NASDAQ was 1.1% lower.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough finish to the week after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$77.87 a barrel and the Brent crude oil price is down 2% to US$81.97 a barrel. Traders were selling oil in response to weak gasoline demand.
Buy Xero shares
The Xero Ltd (ASX: XRO) share price could be good value according to analysts at Goldman Sachs. In response to price increases in the UK, the broker has reiterated its conviction buy rating and $164.00 price target on the cloud accounting platform provider’s shares. It said: “Although we believe this pricing update was somewhat expected following the Australian plan announcement, we view it as another incremental positive for Xero and very supportive of our FY25/26 revenue forecasts.”
Gold price softens
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$2,362.8 an ounce. The precious metal appears to be in a holding pattern ahead of the release of US inflation data.
Pro Medicus shares rated hold
Analysts at Bell Potter have been impressed with the contract wins announced by Pro Medicus Limited (ASX: PME) this week. As a result, the broker has upgraded the health imaging technology company’s shares to a hold rating with an improved price target of $115.00 (from sell and $75.00). It said: “The announcement of recent contract wins provides a heightened degree of certainty for FY25 revenues and earnings, accordingly there is minimal risk of downgrades to consensus for FY25 following the FY24 earnings announcement.”