On Wednesday the S&P/ASX 200 index ended its winning streak and dropped 0.2% lower to 6,681.6 points.
Will the local share market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to edge higher.
The Australian share market looks set to rebound slightly on Thursday despite the mixed night of trade on U.S. markets. According to the latest SPI futures, the ASX 200 index is expected to open the day 4 points or 0.05% higher this morning. On Wall Street the Dow Jones climbed 0.1%, the S&P 500 edged ever so slightly higher, and the Nasdaq dropped 0.1%.
U.S. Fed cuts rates.
Overnight the U.S. Federal Reserve elected to cut interest rates by 0.25% down to a target range of 1.75% to 2%. The decision was by no means unanimous, with five members wanting no action this month. This has led to concerns that there will be no more rate cuts in the medium term.
Oil prices tumble.
Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could trade lower today after oil prices continued their slide. According to Bloomberg, the WTI crude oil price dropped 2.1% to US$58.12 a barrel and the Brent crude oil price dropped 1.5% to US$63.55 a barrel. The catalyst for this was President Trump ordering increased sanctions on Iran instead of military action.
Gold price sinks.
Australian gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled lower. According to CNBC, the spot gold price dropped 0.8% to US$1,501 an ounce after the U.S. Federal Reserve appeared to rule out further rate cuts.
Shares trade ex-dividend.
A number of shares are due to trade ex-dividend this morning and could drop lower. These include hearing solutions company Cochlear Limited (ASX: COH), casino and resorts operator Crown Resorts Ltd (ASX: CWN), and pharmacy chain operator and distributor Sigma Healthcare Ltd (ASX: SIG).
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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.