On Thursday, the S&P/ASX 200 Index (ASX: XJO) had another good session and pushed higher. The benchmark index rose 0.3% to 8,114.7 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 expected to sink
The Australian share market looks set to end the week with a heavy decline following a selloff in the United States. According to the latest SPI futures, the ASX 200 is expected to open 155 points or 1.9% lower this morning. On Wall Street, the Dow Jones was down 1.2%, the S&P 500 fell 1.4%, and the Nasdaq tumbled 2.3%. Fresh economic data stoked fears over a possible US recession.
Oil prices fall
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a difficult finish to the week after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$76.90 a barrel and the Brent crude oil price is down 0.9% to US$80.09 a barrel. This was driven by concerns that the US could be heading for a recession.
ResMed quarterly
ResMed Inc. (ASX: RMD) shares will be on watch today when the sleep disorder treatment company releases its fourth quarter update. The consensus estimate is for ResMed to report earnings per share of US$2.09. In addition, a note out of Macquarie reveals that its analysts are looking for a gross margin of 58.3% for the quarter. Investors may also want to look out for any commentary around the impact of weight loss wonder drugs such as Ozempic.
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent end to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.6% to US$2,487.6 an ounce. The precious metal hit a two-week high on rate hike optimism and safe haven demand.
Buy Champion Iron shares
Champion Iron Ltd (ASX: CIA) shares could have plenty of upside according to analysts at Goldman Sachs. In response to the iron ore miner's quarterly update, the broker has reaffirmed its buy rating with a trimmed price target of $7.60. This implies potential upside of 19% for investors over the next 12 months. Goldman also expects an attractive 3.5% dividend yield in FY 2025.
