On Wednesday the S&P/ASX 200 index had another day to forget. The benchmark index crashed a further 1.6% to 6,606.5 points.
Will the local market be able to bounce back from this on Thursday? Here are five things to watch:
ASX expected to rebound.
After a couple of very disappointing days of trade, the S&P/ASX 200 index looks set to return to form on Thursday. According to the latest SPI futures, the ASX 200 index is expected to jump 59 points or 0.9% at the open. This follows a positive night on Wall Street which in late trade sees the Dow Jones up 0.8%, the S&P 500 up 0.8%, and the Nasdaq up 0.7%.
Metcash results.
The Metcash Limited (ASX: MTS) share price will be one to watch on Thursday when it releases its half year results. According to a note out of Goldman Sachs, it is expecting Metcash to report a 0.3% increase in sales to $6.3 billion and a 1% lift in EBIT (before one-offs) to $144.4 million. The Food pillar is expected to be the main driver of growth during the half.
Oil prices surge higher.
It looks set to be a good day for energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 4.3% to US$58.53 a barrel and the Brent crude oil price has jumped 3.9% to US$63.17 a barrel. A sharper than expected decline in U.S. inventories sent oil prices charging higher.
Gold price tumbles.
Gold miners including Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) could be on the slide today after the spot gold price tumbled lower overnight. According to CNBC, the spot gold price is down 0.4% to US$1,479.5 an ounce after global share markets returned to form.
CSL rated as a buy.
The CSL Limited (ASX: CSL) share price could be on the move today after analysts at Goldman Sachs reiterated their buy rating and $300 price target on the biotherapeutics company's shares. The broker was pleased with its R&D update in Sydney and appears particularly excited by CSL 112. This is a breakthrough medicine targeting secondary heart attacks.
