5 things to watch on the ASX 200 on Friday

How will the Australian market finish the week? Let's find out.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a good session and pushed higher. The benchmark index rose 0.45% to 8,444.3 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:

ASX 200 expected to fall

The Australian share market looks set for a subdued session on Friday following a poor night of trade in the United States ahead of Thanksgiving. According to the latest SPI futures, the ASX 200 is expected to open 24 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.4%, and the Nasdaq is 0.6% lower.

Oil prices rise

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a decent finish to the week after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$68.95 a barrel and the Brent crude oil price is up 0.5% to US$73.17 a barrel. This was despite the US reporting a lift in gasoline stockpiles.

IAG rated neutral

Insurance Australia Group Ltd (ASX: IAG) shares could be fully valued according to analysts at Goldman Sachs. In response to news that the insurance giant is acquiring a 90% interest in the RACQ insurance business, the broker has retained its neutral rating and $7.50. It said: "We are Neutral-rated. Our 12-month TP of A$7.50 is 50% based on our DCF valuation and 50% on a multiple of NTA derived from a regression of P/NTA to sustainable ROTE across our financials coverage universe. Key downside risks include: 1) Commercial/ Personal Rate momentum weakens materially; 2) Significant volume loss to competitors as a result of price increases; 3) Persistent claims inflation."

Gold price creeps higher

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a soft day after the gold price crept ever so slightly higher overnight. According to CNBC, the gold futures price is up a fraction to US$2,641.2 an ounce. A stronger US dollar held back the precious metal.

Buy NIB shares

NIB Holdings Limited (ASX: NHF) shares are a buy according to analysts at Goldman Sachs. This morning, the broker has reaffirmed its buy rating and $6.50 price target on the health insurance company's shares. It commented: "We are Buy-rated on NHF given: 1) It offers defensive exposure to the private health insurance sector 2) The claims environment (utilisation / inflation) is generally manageable albeit until recently 3) NHF policyholder growth has been better than industry, 4) Expense buffers available to support margins and 5) Strong approved rate increases."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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