Image source: Getty Images
On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a difficult session and tumbled lower. The benchmark index fell 0.7% to 7,783 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to sink again
The Australian share market looks set to sink again on Thursday despite the positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 86 points or 1.1% lower this morning. In the United States, the Dow Jones was up 0.05%, the S&P 500 rose 0.15% and the Nasdaq pushed 0.5% higher.
Oil prices soften
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.25% to US$80.64 a barrel and the Brent crude oil price is down 0.1% to US$84.97 a barrel. A surprise increase in US crude inventories weighed on oil prices.
Buy Paladin Energy shares
Paladin Energy Ltd (ASX: PDN) shares are good value according to analysts at Bell Potter. In response to recent share price weakness and news of a plan to acquire Fission Uranium, the broker has upgraded the uranium producer’s shares to a buy rating with an improved price target of $16.10. It said: “PDN has sold off since we moved to a Hold in May-24. We see this as a potential buying opportunity irrespective of the transaction.”
Gold price falls to two-week low
It could be a poor session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.9% to US$2,309.8 an ounce. Stronger bond yields reduced the appeal of the precious metal and sent it to a two-week low.
Iron ore price rises
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) will be on watch on Thursday. That’s because the benchmark iron ore price raced higher overnight and could give these miners a lift ahead of today’s (expected) red session. According to the AFR, the iron ore price is up a sizeable 3.2% today. This appears to have driven by increased buying in China’s spot market amid bets that it will soon unveil more stimulus to boost its struggling property market.