On Thursday, the S&P/ASX 200 Index (ASX: XJO) had another tough day and dropped deep into the red. The benchmark index fell 0.75% to 7,175.5 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:
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ASX 200 expected to rise
The Australian share market looks set to end the week on a positive note after a decent session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 19 points or 0.25% higher this morning. In late trade in the United States, the Dow Jones is up 0.35%, the S&P 500 has risen 0.6%, and the Nasdaq is up 0.95%.
Oil prices down
Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 0.35% to US$71.74 a barrel and the Brent crude oil price is down 0.85% to US$76.56 a barrel. Demand concerns continue to weigh on prices.
BHP shares downgraded
The BHP Group Ltd (ASX: BHP) share price could be fully valued now according to analysts at Morgans. This morning the broker has downgraded the mining giant's shares to a hold rating with a $44.80 price target. It commented: "While hopeful of a China growth recovery, which would be positive for steel/iron ore demand, we are less comfortable with the equity market already moving to price in the recovery before it unfolds." Rio Tinto Ltd (ASX: RIO) shares were also downgraded for the same reason.
Gold price rises
Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a positive finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.2% to US$1,800.8 an ounce. Traders were buying gold after the US dollar weakened.
Technology One rated neutral
The TechnologyOne Ltd (ASX: TNE) share price could also be fully valued according to Goldman Sachs. This morning the broker reiterated its neutral rating with an improved price target of $14.45. It said: "We are attracted to TNE's potential earnings upside in coming years (price increases, cross-sell execution, UK growth, margin expansion) and defensive public sector end markets, but see valuation as relatively full at current levels."
