On Wednesday the S&P/ASX 200 index ended the month on a subdued note. The benchmark index tumbled 0.5% to 6,812.6 points.
Will the local market be able to bounce back on Thursday? Here are five things to watch:
ASX 200 expected to slide.
The S&P/ASX 200 index looks set to start the month on a disappointing note after Federal Reserve chairman Jerome Powell warned that last night’s rate cut might be the only one the central bank makes. According to the latest SPI futures, the ASX 200 index is poised to open the day 28 points or 0.4% lower this morning. On Wall Street the Dow Jones fell 1.2%, the S&P 500 index dropped 1.1%, and the Nasdaq tumbled 1.2% lower.
Oil prices mixed.
Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch on Thursday after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price fell 0.3% to US$57.88 a barrel and the Brent crude oil price rose 0.7% to US$65.17 a barrel.
The Resolute Mining Limited (ASX: RSG) share price will be one to watch on Thursday after the gold miner announced a binding agreement to acquire Toro Gold for US$274 million. In light of this acquisition, management has revised its FY 2019 production and cost guidance to 400,000 ounces of gold at an AISC of US$960 an ounce. Previously it had guided to production of 330,000 ounces at an AISC of US$990 an ounce.
Janus Henderson result disappoints.
The Janus Henderson Group PLC (ASX: JHG) share price could drop lower today after the fund manager released its second quarter update. Janus Henderson reported net income of US$109.4 million in the second quarter and US$229.7 million in the first half. The latter was a disappointing 22% decline on the prior corresponding period. The company’s US-listed shares ended the session down by 9.5%.
Gold price sinks.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after the gold price dropped notably lower overnight. According to CNBC, the spot gold price fell 1.1% to US$1,420.20 an ounce after the U.S. Federal Reserve cut rates but warned that further rate cuts are no guaranteed.
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