On Thursday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and raced notably higher. The benchmark index rose 1.2% to 7,280.4 points.
Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:
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ASX 200 poised to rise
The Australian share market looks set to end the week with a solid gain following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.45% higher this morning. In late trade in the United States, the Dow Jones is up 0.8%, the S&P 500 has climbed 0.55%, and the Nasdaq has risen 0.7%. This was driven by the softening of inflation in the United States.
Oil prices charge higher
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$78.68 a barrel and the Brent crude oil price is up 1.95% to US$84.20 a barrel. Demand hopes boosted prices.
Allkem tipped as a buy
The Allkem Ltd (ASX: AKE) share price could be heading a lot higher from current levels. That's the view of analysts at Goldman Sachs, which have reiterated their buy rating and $15.20 price target on the lithium miner's shares today. It said: "We prefer Allkem (Buy) with optionality across the Americas and Australia growing equity LCE production >4x by FY27E and at a discount to peers."
Gold price jumps
Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.2% to US$1,900.9 an ounce. Softening US inflation has sparked hopes that the US Federal Reserve will slow its rate hikes.
Fortescue named as a sell
The Fortescue Metals Group Limited (ASX: FMG) share price remains severely overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a trimmed price target of $13.40. This implies potential downside of 41% from current levels.
