On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped lower. The benchmark index finished the day 0.4% lower to 5,364.2 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
ASX 200 expected to rise.
The ASX 200 could finish the week on a positive note after a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 0.15% or 8 points higher this morning. On Wall Street the Dow Jones climbed 0.9%, the S&P 500 rose 1.2%, and the Nasdaq index pushed 1.4%. The latter is now in positive territory in 2020.
Oil prices drop lower again.
Energy shares such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped lower. According to Bloomberg, the WTI crude oil price is down 1.9% to US$23.53 a barrel and the Brent crude oil price has dropped 0.9% to US$29.45 a barrel. Prices were up as much as 11% at one stage before giving back all those gains and more.
Gold price surges higher.
Weak economic data, including a surge in U.S. unemployment, sent the gold price higher overnight. This could give gold miners such as Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) a lift on Friday. According to CNBC, the spot gold price has climbed 2.3% to US$1,727.40 an ounce.
Macquarie full year results.
The Macquarie Group Ltd (ASX: MQG) share price will be on watch this morning when the investment bank releases its full year results. According to a note out of Goldman Sachs, it is forecasting cash earnings of $2,952 million in FY 2020, down 1% on the prior corresponding period. The broker has pencilled in a final dividend of $2.95 per share, but acknowledges that there is a risk that it could be deferred.
REA Group third quarter update.
The REA Group Limited (ASX: REA) share price could be on the move today when it releases its third quarter update. Goldman Sachs is expecting the property listings company to post a 3% increase in revenue and an 10% lift in EBITDA to $115 million. Outside this, it will be focusing on management's fourth quarter commentary. It estimates that listings volumes will be down 62% during the quarter because of the coronavirus pandemic.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
