On Thursday, the S&P/ASX 200 Index (ASX: XJO) was well and truly out of form and sank deep into the red. The benchmark index crashed 1.6% to 7,195.5 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 edge lower
The Australian share market looks set to end the week in a subdued fashion despite a reasonably solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 7 points or 0.1% lower this morning. In the United States, the Dow Jones was largely flat, the S&P 500 rose 0.4%, and the NASDAQ rebounded 1%.
Cochlear acquisition approved in the UK
Cochlear Limited (ASX: COH) shares will be on watch today after the hearing solutions company revealed that UK regulators have approved its acquisition of Oticon Medical. Though, the regulator has blocked the acquisition of the bone conduction implants side of the business for competition reasons.
Oil prices sink
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough finish to the week after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.3% to US$69.43 a barrel and the Brent crude oil price is down 3.9% to US$74.10 a barrel. Concerns over potential interest rate hikes weighed on oil prices.
Gold price falls
ASX 200 gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.1% to US$1,923.8 an ounce. The prospect of higher interest rates was to blame.
NextDC named as a buy
NextDC Ltd (ASX: NXT) shares could be in the buy zone according to Goldman Sachs. The broker has just been to an investor day event held by global data centre giant Equinix (NASDAQ: EQIX). It said: "Overall we believe commentary at the Equinix day supports our positive thesis around the benefits of AI in driving demand (hyperscale & co-location) within the Australian data centre market." Goldman has a buy rating and $14.96 price target on NextDC's shares.
