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5 things to watch on the ASX 200 on Thursday

On Wednesday the S&P/ASX 200 index returned to form and climbed a solid 0.35% to 6,638 points.

Will the local share market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise.   

The Australian share market looks set for another positive day of trade after Wall Street charged higher overnight. According to the latest SPI futures, the ASX 200 index is expected to open the day 25 points or 0.4% higher this morning. On Wall Street the Dow Jones rose 0.85%, the S&P 500 pushed 0.7% higher, and the Nasdaq stormed 1.05% higher.

Oil prices sink.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could tumble lower today after oil prices sank lower overnight. According to Bloomberg, the WTI crude oil price dropped 2.4% to US$56.01 a barrel and the Brent crude oil price fell 2.1% to US$61.08 a barrel after reports that President Trump could ease sanctions on Iran.

Gold price rebounds.

It could be a better day of trade for gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price rebounded above the US$1,500 an ounce level. According to CNBC, the spot gold price pushed 0.35% to US$1,504.20 per ounce after President Trump called for rate cuts.

Telstra added to conviction buy list.

The Telstra Corporation Ltd (ASX: TLS) share price could be on the rise today after analysts at Goldman Sachs added the telco giant to their conviction buy list with a price target of $4.30. The broker made the move partly on valuation grounds after the recent pull back in its share price. Goldman’s price target implies a potential total return of ~25% over the next 12 months.

Shares trade ex-dividend.

More popular shares are due to trade ex-dividend this morning and could edge lower. These include appliance maker Breville Group Ltd (ASX: BRG), travel agent giant Flight Centre Travel Group Ltd (ASX: FLT), struggling financial services company IOOF Holdings Limited (ASX: IFL), and mining giant South32 Ltd (ASX: S32).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Telstra 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.

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