On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and tumbled notably lower. The benchmark index fell 0.9% to 6,982.7 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
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ASX 200 expected to rebound
The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.65% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 1.3%, the S&P 500 climb 1.2%, and the Nasdaq rise 0.7%.
Oil prices sink
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week in the red after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$63.76 a barrel and the Brent crude oil price is down 3.4% to US$66.97 a barrel. Concerns about rising COVID-19 cases in India and the resumption of the US gasoline pipeline weighed on prices.
Xero rated as a buy
The Xero Limited (ASX: XRO) share price crashed lower following the release of its full year results on Thursday. One broker that believes this is a buying opportunity is Goldman Sachs. This morning the broker has reiterated its buy rating, albeit with a slightly trimmed price target of $151.00. It commented: "Reflecting the FY21 result and strong sub momentum, we revise FY22-23 revenue +3 to +4%. However, given the step up in investment our EBITDA is -29%/-28%, but our FY30+ earnings are largely unchanged."
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week on a positive note after the gold price pushed higher. According to CNBC, the spot gold price is up 0.25% to US$1,827.30 an ounce. The precious metal was given a boost from easing treasury yields.
Carsales shares to return?
The Carsales.Com Ltd (ASX: CAR) share price could return from its trading halt this morning. The car listings company has requested the halt in order to raise funds to acquire a 49% stake in United States-based business Trader Interactive for approximately US$624 million (A$800 million). To fund the acquisition, Carsales is looking to raise $600 million via a pro rata accelerated renounceable entitlement offer at $17.00 per new share.
