Key factors to watch on the ASX 200 ahead of Friday's session
Analysts note a likely dip in the ASX 200 after U.S. market losses, while rising oil and gold prices and a bullish rating on Paladin Energy could influence market direction.
The S&P/ASX 200 Index closed Thursday at 9,065.1 points after a 2.6% gain, prompting questions about whether the rally can be sustained into Friday. Futures data from SPI suggest the index may open about 33 points, or 0.35%, lower, reflecting a sell-off on Wall Street where the Dow Jones fell 3.15%, the S&P 500 dropped 3.8%, and the Nasdaq slipped 4.9%.
Energy stocks could benefit from higher crude prices. Bloomberg reported that WTI crude rose 2.9% to US$90.66 a barrel and Brent crude increased 4% to US$98.38, driven by recent tanker attacks in the Middle East.
"We maintain our BUY rating with an unchanged target price of A$13.10 per share," Morgans said about Paladin Energy, adding that the uranium producer's shares are undervalued at $7.57 compared with the target.
Gold miners may also see gains as the metal rallied. CNBC noted that gold futures rose 1.3% to US$4,124.9 an ounce, reaching a two-week high amid weakening bond yields.
Investors will also be watching the upcoming results from Macquarie Group, which could add further direction to the market.