On Thursday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its positive run with yet another gain. The benchmark index finished the day 0.25% higher at 5,850.1 points.
Will the ASX 200 be able to build on this and finish the week on a high? Here are five things to watch:
ASX futures pointing higher.
According to the latest SPI futures, the ASX 200 is expected to have a positive day of trade. Current futures contracts are pointing to a 0.5% of 27 points gain at the open. This follows a positive night of trade on Wall Street which late in the session sees the Dow Jones up 1%, the S&P 500 up 1.1%, and the Nasdaq also up 1.1%.
U.S. stocks rally.
According to CNBC, reports that the United States may ease tariffs on Chinese goods during trade war negotiations has caused a spike in U.S. stocks overnight. The Dow Jones was trading flat and then surged over 200 points higher following the release of the report.
Oil prices drop lower.
Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) shares could come under pressure on Friday after oil prices dropped lower overnight. According to Bloomberg, the WTI crude oil price dropped 0.6% to US$52.00 a barrel and the Brent crude oil price edged 0.2% lower to US$61.21 a barrel. Rising production in the United States was largely behind the decline.
Aged care Royal Commission kicks off.
This morning the Royal Commission into Aged Care Quality and Safety will begin in Adelaide. As we saw with the banks during the banking Royal Commission, this could mean that the shares of aged care providers such as Estia Health Ltd (ASX: EHE) come under pressure as details from the inquiry emerge.
Afterpay Touch shares will be on watch.
The Afterpay Touch Group Ltd (ASX: APT) share price will be on watch on Friday after the release of a note out of Goldman Sachs. Although the broker has retained its buy rating, it has slashed its price target by 26% to $19.25. The broker made the move after adjusting its forecasts to reflect lower merchant fee assumptions in the U.S. market. In addition to this, investors might want to keep an eye out for a potential trading update release today.
