On Wednesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its disappointing run with a 0.15% decline to 5,580.6 points.
Will the market be able to bounce back on Thursday? Here are five things to watch:
ASX futures pointing higher.
According to the latest SPI futures, the ASX 200 is expected to open 15 points or 0.3% higher on Thursday. This follows a mixed night of trade on Wall Street following the U.S. Fed's decision to lift rates. Late in the U.S. session the Dow Jones is up 0.4%, but the S&P 500 is down 0.1% and the Nasdaq is flat.
U.S. Fed raises rates.
As was widely expected, the U.S. Federal Reserve has increased its benchmark interest rate by a quarter-point overnight to 2.25% to 2.5%. The central bank has, however, lowered its forecast for 2019 to just two hikes. The Fed said: "The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term."
Westpac dividend being paid.
Eligible Westpac Banking Corp (ASX: WBC) shareholders will receive the banking giant's final fully franked 94 cents per share dividend later today. Another company that is due to pay its dividend today is fund manager Pendal Group Ltd (ASX: PDL). Pendal is paying a partially franked 30 cents per share dividend to shareholders.
Oil prices rebound.
Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) shares were amongst the worst performers on the ASX 200 on Wednesday after oil prices crashed lower. Their shares may fare better today after oil prices rebounded slightly. According to Bloomberg, the WTI crude oil price is up 1.6% to US$46.97 a barrel and the Brent crude oil has pushed 0.4% higher to US$56.46 a barrel.
Goldman cuts Bega Cheese price target by 19%.
The Bega Cheese Ltd (ASX: BGA) share price fell heavily on Wednesday after the food company provided a disappointing market update due to competitive farm gate milk procurement. The guidance provided by management was significantly lower than Goldman expected, leading to the broker slashing the price target on its shares by 19% to $5.25. Goldman has a neutral rating on Bega Cheese's shares.
