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On Thursday, the S&P/ASX 200 Index (ASX:XJO) had a day to forget and crashed into red. The reference index lost 2% of its value and fell to 6,845.6 points.
Will the market be able to recover from this on Friday and end the week on a high? Here are five things to watch:
ASX 200 expected to rise
It looks like the Australian stock market will end the week on a positive note. This follows a volatile but decent night of trading on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 22 points or 0.3% higher this morning. In the United States, the Dow Jones rose 0.45% and the S&P 500 rose 0.3%, but the Nasdaq fell 0.25%. At one point, all three indices were deep in the red.
Oil prices continue to fall
energy producers like beach energy ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could end the week badly after oil prices fell again overnight. According to Bloomberg, the price of WTI crude oil is down 3.7% to $86.26 a barrel and the price of Brent crude oil is down 3.9% to $91.94 a barrel. Recession fears and lockdowns in China are weighing on prices.
Several ASX 200 stocks will sell without dividends on Friday and could trade lower. This includes fuel retailer ampol ltd (ASX: ALD), supermarket operator Coles Group SL (ASX: COL), car retailer Eagers Automotive Ltd (ASX: APE), and mining and mining services company Limited mineral resources (ASX: MIN).
The price of gold sinks
gold miners including Newcrest Mining Ltd. (ASX:NCM) and Santa Barbara Ltd. (ASX: SBM) could have a rough weekend after the price of gold sank overnight. According to CNBC, the spot gold price is down 1.2% to $1,706.70 an ounce. A stronger US dollar and rate hike fears appear to be weighing on the precious metal.
Rio Tinto rated as a buy
the Rio Tinto Limited (ASX: RIO) share price could be big value according to analysts at Goldman Sachs. This morning, the broker responded to news that the mining giant has agreed to acquire Turquoise Hill while maintaining its buy rating and $121.50 price target. The broker said: “Deal in principle for TRQ below our valuation, implies ~0.7xNAV.”