5 things to watch on the ASX 200 on Friday

ResMed Inc. (ASX:RMD) and Woodside Petroleum Limited (ASX:WPL) shares will be on watch on the ASX 200 on Friday. Here's why…

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index fell 0.9% to 5,936.5 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to edge lower.

The ASX 200 looks set to end the week on a subdued note on Friday. According to the latest SPI futures, the benchmark index is expected to open the day 4 points or 0.1% lower. This follows a mixed night of trade on Wall Street which has seen the Dow Jones fall 0.15%, but the S&P 500 rise 0.05% and the Nasdaq index climb 0.35% higher. This was the latter's fifth straight gain.

Oil prices rebound.

It could be a strong finish to the week for energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.5% to US$38.90 a barrel and the Brent crude oil price has pushed 2% higher to US$41.53 a barrel. Oil prices rebounded on OPEC+ output optimism.

Gold price edges lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could end the week on poor note after the gold price weakened. According to CNBC, the spot gold price is down 0.3% to US$1,730.50 an ounce. The price of the precious metal softened after U.S. jobless claims fell.

ResMed rated as a buy.

The ResMed Inc. (ASX: RMD) share price could go higher from here according to analysts at Goldman Sachs. This morning the broker has reaffirmed its buy rating and $27.00 price target on the medical device company's shares. Goldman hosted a call with ResMed's management yesterday and notes that demand for Obstructive Sleep Apnoea (OSA) products has remained robust during the pandemic.

Woodside given buy rating.

In addition to ResMed, Goldman Sachs is positive on Woodside Petroleum. It has reaffirmed its buy rating and $33.85 price target on the energy producer's shares. This price target implies potential upside of 55.6% for its shares over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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.

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