On Wednesday the S&P/ASX 200 index was out of form and tumbled notably lower. The benchmark index finished the day a disappointing 0.8% lower at 6,689.5 points.
Will the local share market be able to bounce back on Thursday? Here are five things to watch:
ASX 200 futures pointing higher.
The S&P/ASX 200 index looks set to bounce back on Thursday. According to the latest SPI futures, the ASX 200 is expected to rise 0.1% or 6 points this morning. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 0.4%, the S&P 500 up 0.3%, and the Nasdaq climb 0.3%.
US Federal Reserve cuts rates.
The U.S. Federal Reserve elected to cut rates by 25 basis points to the range of 1.5% to 1.75% overnight. However, the central bank indicated that it would now pause with its cuts. Its statement said: “The Committee will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.”
The Australia and New Zealand Banking Group (ASX: ANZ) share price will be on watch today when the banking giant releases its full year results. According to a note out of Goldman Sachs, its analysts expect its cash earnings from continued operations (pre-one-offs) to be up 0.9% to $6,545 million. A final dividend of 80 cents is expected to be declared.
Oil prices lower.
Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 1.2% to US$54.90 a barrel and the Brent crude oil price dropped 1.7% to US$60.53 a barrel. A rise in US inventories put pressure on prices.
Gold price rises.
The Federal Reserve’s decision to cut rates gave the gold price a boost overnight, much to the delight of shareholders of gold miners including Newcrest Mining Ltd (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR). According to CNBC, the spot gold price is up 0.5% to US$1,497.90 an ounce.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
- Forget term deposits and buy these ASX dividend shares – August 10, 2020 6:00pm
- Why I would buy Goodman Group and these blue chip ASX shares – August 10, 2020 4:42pm
- Top broker thinks the IDP Education share price is going a lot higher – August 10, 2020 4:38pm