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."
