5 things to watch on the ASX 200 on Friday

It looks set to be a tough finish to the week for Aussie investors.

A stressed businessman in a suit shirt and trousers sits next to his briefcase with his head in his hands while the ASX boards behind him show BNPL shares crashing

Image source: Getty Images

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and sank into the red. The benchmark index fell 0.95% to 7,859.7 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 sink again

The Australian share market looks set to sink again on Friday following a selloff in the United States. According to the latest SPI futures, the ASX 200 is expected to open 108 points or 1.4% lower this morning. In late trade on Wall Street, the Dow Jones is down 3.7%, the S&P 500 is down 4.5%, and the Nasdaq is 5.6% lower.

Oil prices crash

ASX 200 energy shares including Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a session to forget after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 6.9% to US$66.78 a barrel and the Brent crude oil price is down 6.6% to US$70.00 a barrel. This follows news that OPEC is accelerating its output increases.

Buy Sonic shares

Goldman Sachs thinks investors should be snapping up Sonic Healthcare Ltd (ASX: SHL) shares while they are down. This morning, the broker has initiated coverage on the healthcare company with a buy rating and $32.20 price target. It said: "Funding reforms in Germany are a headwind to growth but unlikely to come as a surprise to investors given the industry's track record of withstanding cuts to reimbursement. The cost reduction initiatives in the US and synergies from the Medisyn & Dr Risch Group (Swiss acquisitions), however will assist to deliver earnings ahead of Visible Alpha Consensus (Gse: +6% FY25 EPS cons)."

Gold price tumbles

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 1.3% to US$3,125.4 an ounce. Not even the gold price could escape the market selloff.

Capricorn shares upgraded

Analysts at Goldman Sachs have upgraded Capricorn Metals Ltd (ASX: CMM) shares to a buy rating with a $9.90 price target. Commenting on the gold miner, the broker said: "With increasingly compelling growth projects at Karlawinda (expansion) and Mt. Gibson (one of few greenfield projects in the sector), both with emerging underground optionality (not in GSe base case), and a strong funding position to execute, we upgrade CMM to Buy."

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 recommended Sonic Healthcare. 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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