On Christmas Eve the benchmark index climbed 0.5% to 5,493.8 points.
Will the local market be able to build on this 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 0.6% or 35 points higher on Thursday after U.S. markets rebounded from their Christmas Eve selloff. Late in the U.S. session the Dow Jones is 2.7% higher, the S&P 500 is 2.9% higher, and the Nasdaq has surged 3.7% higher.
Tech shares on watch.
Australian tech shares including Altium Limited (ASX: ALU) and Afterpay Touch Group Ltd (ASX: APT) will be on watch today after their U.S. counterparts suffered heavy declines on Christmas Eve. Although it has rebounded strongly today, on Christmas Eve the Nasdaq tech index fell a sizeable 5%.
Oil prices rocket.
Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) shareholders will be breathing a sigh of relief today after oil prices rebounded from a Christmas Eve sell off in style. According to Bloomberg, the WTI crude oil price is up 7.7% to US$45.79 a barrel and the Brent crude oil price has pushed 7.3% higher to US$54.15 a barrel. Prices rebounded after Russia signalled that OPEC and its partners would be willing to meet when needed to help manage the oil market.
Gold price declines.
The rise in equities has been a blow to gold miners such as Northern Star Resources Ltd (ASX: NST) and Resolute Mining Limited (ASX: RSG). Over the Christmas break the gold price surged higher, but the rebound on Wall Street means the precious metal has now given back its gains. Since peaking at approximately US$1,280 an ounce yesterday, the gold price has fallen 1.1% to US$1,266 an ounce.
Rio Tinto to spin off its Canadian iron ore business.
The Rio Tinto Limited (ASX: RIO) share price will be on watch on Thursday after Reuters reported that the mining giant is planning to take its Iron Ore Company of Canada business public in 2019 through a dual listing in Canada and Wall Street. Rio Tinto is believed to be targeting a valuation of US$4 billion.
