Following a strong performance on Thursday, where the ASX 200 Index rose 0.3% to 8,114.7 points, the Australian share market faces a challenging end to the week. Here are five key factors that investors should monitor:
ASX 200 Expected to Decline The Australian share market is anticipated to face a significant drop on Friday. According to the latest SPI futures, the ASX 200 is expected to open 155 points, or 1.9%, lower. This forecast follows a sharp selloff in the United States, where the Dow Jones fell by 1.2%, the S&P 500 decreased by 1.4%, and the Nasdaq tumbled 2.3%. Concerns over a potential US recession, prompted by recent economic data, have contributed to this negative outlook.
Oil Prices Drop Energy shares within the ASX 200, such as Beach Energy Ltd (ASX: ASX:BPT) and Karoon Energy Ltd (ASX: KAR), may face a difficult finish to the week due to a decline in oil prices. WTI crude oil prices fell by 1.3% to $76.90 per barrel, while Brent crude prices decreased by 0.9% to $80.09 per barrel. These declines are attributed to fears of a potential US recession impacting global oil demand.
ResMed Quarterly Update ResMed Inc. (ASX: RMD) will be under scrutiny as it releases its fourth-quarter update. Analysts are expecting the company to report earnings per share of $2.09. Additionally, forecasts suggest a gross margin of 58.3% for the quarter. Investors will also be attentive to any comments on the impact of weight loss drugs, such as Ozempic, on the company’s business.
Gold Prices Increase Gold shares in the ASX 200, including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: ASX:NST), might see a positive end to the week due to a rise in gold prices. The spot gold price increased by 0.6% to $2,487.60 per ounce. This uptick is attributed to optimism around potential rate hikes and increased demand for gold as a safe haven investment.
Champion Iron Shares Outlook Champion Iron Ltd (ASX: CIA) could see considerable upside according to recent analysis. Following the company’s quarterly update, there is a positive outlook with a revised price target of $7.60, suggesting a potential upside of 19% over the next 12 months. Additionally, the company is expected to offer an attractive dividend yield of 3.5% in FY 2025.
As the Australian share market faces a potentially turbulent day, key factors such as declines in oil prices, updates from ResMed, rising gold prices, and the outlook for Champion Iron will be critical for investors. Monitoring these developments will be essential for understanding the market’s direction and making informed investment decisions.