5 things to watch on the ASX 200 on Friday 28 January 2022

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose 0.15% to 7,342.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set to end the week in a very positive fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 106 points or 1.6% higher this morning. This is despite further weakness on Wall Street, which late on sees the Dow Jones down 0.2%, the S&P 500 down 0.6%, and the Nasdaq dropping 1.1%. It is worth noting, however, that the US market and the SPI futures have been swinging wildly and all this could change come opening time.

ResMed Q2 update

The ResMed Inc. (ASX: RMD) share price will be on watch today when it releases its second quarter update. The sleep treatment focused medical device company is expected to deliver a strong result thanks partly to rival Philips dealing with a major 5 million+ CPAP device recall. The big question will be how much supply chain constraints limited its growth.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today following a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.45% to US$86.97 a barrel and the Brent crude oil price is down 0.4% to US$89.63 a barrel. Oil prices softened as traders took profit after prices hit seven-year highs.

Gold price tumbles

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price dropped. According to CNBC, the spot gold price is down 1.9% to US$1,794.40 an ounce. The precious metal came under pressure after the US Federal Reserve’s hawkish comments spooked traders and boosted the US dollar.

Premier Investments a sell

The Premier Investments Limited (ASX: PMV) share price is overvalued according to analysts at Goldman Sachs. Although the retailer delivered a half year trading update ahead of the market’s expectations (even after adjusting for rent abatements), it isn’t enough for a change of rating. Goldman said the update did not ease its longer term concerns. As a result, it has retained its sell rating with a $23.60 price target.

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Krzysztof Stanowicz

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