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On Thursday, the S&P/ASX 200 Index (ASX:XJO) experienced a strong recovery, closing 1.1% higher at 8,075.7 points. As the market heads into Friday, here are five key elements to monitor, which could influence the ASX 200’s performance:
- ASX 200 Expected to Surge
The Australian market appears poised for another strong performance on Friday, thanks to a positive session on Wall Street. The latest SPI futures indicate that the ASX 200 may open 137 points or 1.7% higher. Wall Street's key indices contributed to this optimism, with the Dow Jones Industrial Average rising by 0.6%, the S&P 500 increasing by 0.75%, and the Nasdaq gaining 1%. The ripple effect from this momentum could bolster Australian equities across various sectors.
- Oil Prices Continue Upward Trend
Energy companies within the ASX 200 are likely to experience gains after a significant rise in global oil prices. Beach Energy Ltd (ASX:BPT) and Karoon Energy Ltd (ASX:KAR) are among the companies expected to benefit. This surge in oil prices follows Hurricane Francine's disruption of production in the Gulf of Mexico, pushing the West Texas Intermediate (WTI) crude oil price up by 2.8% to US$69.22 per barrel and Brent crude oil prices up 2.25% to US$72.20 per barrel. These price increases could enhance the profitability of energy producers in the Australian market.
- Ex-Dividend Shares to Watch
A number of companies within the ASX 200 are set to go ex-dividend on Friday. Among them are CAR Group Limited (ASX:CAR), Downer EDI Ltd (ASX:DOW), Kelsian Group Ltd (ASX:KLS), and Lovisa Holdings Ltd (ASX:LOV). These shares may trade lower due to the dividend payout adjustment. Lovisa, in particular, will be distributing a 37 cents per share dividend to shareholders in mid-October, potentially impacting its share price in the short term as the market adjusts for the upcoming payment.
- Gold Prices Reach New Heights
Gold miners such as Evolution Mining Ltd (ASX:EVN) and Northern Star Resources Ltd (ASX:NST) could see positive movement on Friday, driven by a record-breaking surge in the gold price. Overnight, gold futures reached US$2,544.2 per ounce, an increase of 0.7%. This rally was sparked by expectations of a significant interest rate cut by the U.S. Federal Reserve. Gold is often seen as a safe-haven asset in times of economic uncertainty, and this latest rally could benefit Australian gold mining companies as they take advantage of high prices.
- Megaport in the Spotlight
Megaport Ltd (ASX:MP1) is attracting attention in the technology sector. Goldman Sachs has reiterated its positive outlook on the company, citing increasing demand for its services. The firm’s network-as-a-service (NaaS) model is gaining traction, particularly with the rise of GPU-as-a-Service (GPUaaS) operators. Megaport's growing presence in data centers, such as those operated by Latitude.sh, is contributing to an increase in demand for its connectivity solutions. Analysts have maintained a strong outlook for the company, forecasting continued growth within the sector.
