On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher. The benchmark index rose 0.85% to close at a record high of 8,355.9 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 fall
The Australian share market looks set to fall on Friday despite a relatively good session in the United States. According to the latest SPI futures, the ASX 200 is expected to open 32 points or 0.4% lower this morning. In late trade on Wall Street, the Dow Jones is up 0.4%, the S&P 500 is up 0.1%, and the Nasdaq is 0.1% higher.
Oil prices edge higher
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a decent finish to the week after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$70.77 a barrel and the Brent crude oil price is up 0.4% to US$74.52 a barrel. Bargain hunters appear to believe that a four-day losing streak has left oil undervalued.
Buy Challenger shares
Analysts at Bell Potter have initiated coverage on Challenger Ltd (ASX: CGF) shares this morning. According to the note, the broker believes the annuities company's shares are undervalued and has put a buy rating and $8.25 price target on them. This implies potential upside of over 30% from current levels. It said: "Our buy case is predicated the recent increase in sales of lifetime annuities and resultant stronger growth in the life book."
Gold price hits record high
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a positive finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.6% to US$2,707.9 an ounce. The gold price hit a record high on US election uncertainty and policy easing.
Yancoal quarterly
Yancoal Australia Ltd (ASX: YAL) shares will be on watch on Friday. That's because the coal miner released its quarterly update after the market close yesterday. Yancoal revealed that total ROM coal volumes increased 26% compared to the second quarter. In addition, its attributable saleable coal volume jumped 24%. Management notes that this reflects the second-half weighted production profile it anticipated and reconfirms the production rates that its portfolio mines can achieve.
