5 things to watch on the ASX 200 on Friday

Will the market end the week on a high? Let's find out.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark index fell 0.6% to 8,378.7 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:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Friday following a relatively positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 17 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.75%, the S&P 500 is up 0.2%, but the Nasdaq is 0.2% lower.

Oil prices fall

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$74.68 a barrel and the Brent crude oil price is down 0.85% to US$78.33 a barrel. This follows news that Donald Trump will ask OPEC to bring prices down.

Buy Wesfarmers shares

Analysts at Goldman Sachs have upgraded Wesfarmers Ltd (ASX: WES) shares to a buy rating with an improved price target of $78.70 (from $69.50). Commenting on the Bunnings owner, the broker said: "Reflecting our updated forecasts, WES will have the highest F24-27 EPS CAGR of 10% in our top 5 consumer coverage (vs WOW, COL, EDV, JBH) while ROIC will expand by 6pts to 25% vs peers flat, resulting in DCF and SOTP valuation uplift. Our 12m TP of A$78.7 implies 11% TSR, upgrade to Buy from Neutral. Our FY25/26/27e EPS is -1%/+2%/+5% above VA Consensus."

Gold price eases

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.3% to US$2,763.4 an ounce. The precious metal edged lower after the US dollar strengthened.

Fortescue shares upgraded

Fortescue Ltd (ASX: FMG) shares are now a hold according to analysts at Bell Potter. This morning, the broker has taken its sell rating off the iron ore giant's shares and upgraded them to a hold rating with an improved price target of $17.53. It said: "We see potential for some near-term tailwinds from a lower exchange rate, this is now factored into our numbers and partially offsets reduced price realisations. At these levels, FMG's dividend yield is beginning to emerge as a price support and combined with recent share price decline we upgrade our recommendation to Hold."

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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. 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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