On Wednesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had its best day in four months. It finished the day higher by 1.2% at 5,939.1 points thanks partly to solid gains in the banking sector.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX futures pointing lower.
Unfortunately the local market is expected to give back some of yesterday’s gains. According to the latest SPI futures, the S&P/ASX 200 is poised to fall 0.4% or 25 points at the open. This follows a weak night of trade on Wall Street which saw the Dow Jones fall 0.4% and the S&P 500 and Nasdaq edge slightly lower. U.S. markets dropped lower after the U.S. Federal Reserve minutes confirmed its plans to continue raising rates.
Afterpay Touch hit with Senate inquiry.
The Afterpay Touch Group Ltd (ASX: APT) share price will be on watch on Thursday. Its shares crashed lower in late trade after reports emerged claiming that payday lenders, debt management firms, and buy now pay later platforms will be the subject of a new Senate inquiry. Cash Converters International Ltd (ASX: CCV), Credit Corp Group Limited (ASX: CCP), Money3 Corporation Limited (ASX: MNY), and Zip Co Ltd (ASX: Z1P) shares also sank lower on the news.
Australian Pharmaceutical Industries results.
Pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API) is scheduled to release its full year results on Thursday. All eyes will be on how the company’s Clearskincare Clinics acquisition is performing and trading conditions for its core business.
Oil prices slide lower.
The shares of energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.6% to US$70.05 a barrel and the Brent crude oil price dropped 1.4% to US$80.29 a barrel.
AGM season continues.
The annual general meetings continue today with health and safety products company Ansell Limited (ASX: ANN) and wine giant Treasury Wine Estates Ltd (ASX: TWE) hosting their respective events in Melbourne. Investors will be looking out for trading updates and any changes to guidance from the two companies.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Ansell Ltd. and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.