On Thursday the S&P/ASX 200 index fell heavily for a second day in a row. The benchmark index fell a disappointing 0.75% to 6,672.9 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX futures pointing higher.
The S&P/ASX 200 index looks set to end its poor run and rebound on Friday. According to the latest SPI futures, the S&P/ASX 200 index is expected to rise 38 points or 0.6% at the open. This is despite it being a subdued night of trade on Wall Street. In late trade the Dow Jones is down 0.1%, the S&P 500 index is trading 0.1% lower, and the Nasdaq is down 0.15%.
Oil prices surges higher.
Australian energy shares such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be on the rise today after oil prices surged higher again. According to Bloomberg, the WTI crude oil price rose 2.7% to US$58.52 a barrel and the Brent crude oil price climbed 2.4% to US$63.89 a barrel. The prospect of longer cuts by OPEC boosted prices.
Coles downgraded.
The Coles Group Ltd (ASX: COL) share price will be on watch today after being downgraded by analysts at Goldman Sachs. The broker has downgraded the supermarket operator's shares to a neutral rating from buy on valuation grounds. It has a $15.90 price target on its shares.
Gold price sinks.
It looks set to be a disappointing end to the week for gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM). They could come under pressure today after the gold price tumbled lower. The price of the precious metal fell 0.65% to US$1,465.10 an ounce after trade deal hopes re-emerged.
Westpac rated as neutral
The Westpac Banking Corp (ASX: WBC) share price has fallen heavily this week due to its AUSTRAC bombshell. One broker that doesn't believe this is a buying opportunity is Goldman Sachs. Its analysts have retained their neutral rating and cut their price target by 10% to $25.58. The broker notes that banks tend to underperform their peers materially after banking incidents of this magnitude.
