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 fell 1.3% to 7,861.2 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 better note despite a mixed session in the United States. According to the latest SPI futures, the ASX 200 is expected to open 24 points or 0.3% higher this morning. On Wall Street, the Dow Jones was up 0.2%, the S&P 500 fell 0.5%, and the Nasdaq tumbled 0.9%.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.7% to US$78.13 a barrel and the Brent crude oil price is up 0.65% to US$82.25 a barrel. This was driven by second quarter economic growth coming in stronger than expected.
Mineral Resources quarterly
Mineral Resources Ltd (ASX: MIN) shares will be on watch today when the mining and mining services company releases its quarterly update. According to a note out of Goldman Sachs, it is forecasting iron ore shipments of 4.6Mt and spodumene shipments of 358kt for the fourth quarter. This is expected to be achieved with realised prices of US$95 per tonne and US$886 per tonne, respectively.
Gold price sinks
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough finish to the week after the gold price sank overnight. According to CNBC, the spot gold price is down 2.3% to US$2,360.7 an ounce. The precious metal hit a two-week low after traders took profit.
Sell Fortescue shares
Fortescue Ltd (ASX: FMG) shares sank deep into the red on Thursday following the release of its quarterly update. Unfortunately, analysts at Goldman Sachs believe the iron ore giant's shares could continue to slide and have reiterated their sell rating with a reduced price target of $15.50. Based on the current Fortescue share price of $20.14, this implies potential downside of 23%. It said: "The stock is trading at a premium to RIO & BHP on our estimates; ~1.3x NAV vs. BHP at ~0.9x NAV and RIO at ~0.8x NAV."
