On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped lower. The benchmark index fell 0.7% to 6,745.9 points.
Will the market be able to bounce back from this on Friday? Here are five things to watch:
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ASX 200 to fall
The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% lower this morning. This follows a poor night on Wall Street, which in late trades sees the Dow Jones down 0.2%, the S&P 500 down 1.1%, and the Nasdaq sinking 2.5% lower. Rising bond yields have spooked investors again.
ASX 200 tech shares under pressure
It looks set to be a difficult end to the week for Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Friday. This follows another selloff of US tech stock overnight after US treasury yields surged higher. According to CNBC, the 10-year Treasury yield surged to 14-month high of 1.75% and the 30-year rate topped 2.5%. Given how the local tech sector tends to follow the Nasdaq's lead, which is down 2.5%, this doesn't bode well for today's trading session.
Oil prices crash
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are likely to end the week deep in the red after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price is down 8.1% to US$59.34 a barrel and the Brent crude oil price has fallen 8% to US$62.56 a barrel. A rising US dollar, a build-up of US crude and fuel inventories, and concerns over a stuttering vaccine rollout were behind the decline.
Gold price rises
Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after a positive night of trade for the gold price. According to CNBC, the spot gold price is up 0.4% to US$1,733.90 an ounce. The precious metal rose despite bond yields hitting new 14-month highs.
Webjet shares given buy rating
The Webjet Limited (ASX: WEB) share price could be going higher from here according to Goldman Sachs. Following its investor update yesterday, the broker has reiterated its buy rating and $7.36 price target. Goldman notes that Webjet is aiming to grow its WebBeds business materially more than it was forecasting. It notes management's target of a TTV of $10 billion, compared to its forecast of $3.9 billion.
